Source · Select Committees · Work and Pensions Committee
Recommendation 22
22
Not Addressed
Paragraph: 91
When the pension freedoms were introduced, a guidance guarantee was presented as a key pillar...
Recommendation
When the pension freedoms were introduced, a guidance guarantee was presented as a key pillar of the reforms supporting people making use of the new range of choices available to them. Everyone with a defined contribution pension is entitled to free impartial guidance from Pension Wise when they come to access their pension. The Minister for Pensions and Financial Inclusion has agreed that having a Pension Wise appointment should be the norm. We recommend that DWP should set out a plan for how this will be achieved and a timetable for getting there. Pension Wise is an important tool to prevent scams and we will look further at its role, within the new MoneyHelper brand, in the next part of our inquiry on accessing pension savings.
Government response summary AI-generated
The government response outlines the Financial Conduct Authority's (FCA) framework for tackling fraud, its collaboration with other agencies, and its proactive publication of information. It does not address the recommendation for DWP to set out a plan and timetable for Pension Wise appointments becoming the norm.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
91
Government Response
Not Addressed
HM Government · verbatim extract
Not Addressed
Pension Wise appointments are used to help people understand their options when accessing a Defined Contribution pension. While the appointment 14 Responses to the Committee’s Fifth Report of Session 2019–21 does have a section on identifying scams, its primary aim is about retirement options, and it is only available to people who are over 50 with a Defined Contribution pot. It is not available to many people who may have Defined Benefit pensions. Many people transfer their pensions before they reach 50 and scam activity only comes to light when they try and do something with their pension. These people will not be covered by Pension Wise. The Money and Pensions Service (MaPS) welcome initiatives that increase take up of Pension Wise. MaPS provides pensions guidance to everybody, irrespective of age and type of pension. Anyone who is worried about a scam can pick up the phone and get support, and can be directed to the right service for their guidance needs (including Pension Wise, but also help with debt, money guidance, etc.). Evidence shows that the sooner someone gets help / intervention occurs, the more effective it will be at preventing detriment. This service is soon to be rebranded as ‘MoneyHelper Pensions’. The Committee is looking at the roles of Pension Wise and MoneyHelper Pensions in the next stage of their inquiry, and the Government will respond at that point to any further recommendations that may result from their next report.
Read the full response on Parliament ↗