Source · Select Committees · Work and Pensions Committee
Recommendation 24
24
Not Addressed
The pension advice allowance allows members of defined contribution and hybrid pension schemes to withdraw...
Recommendation
The pension advice allowance allows members of defined contribution and hybrid pension schemes to withdraw £500 from their pension up to three times in different tax years for advice. There appears to have been little take up of the Pension Advice Allowance which has been set at too low a level. We welcome news that HM Treasury is reviewing this policy after the Minister for Pensions and Financial Inclusion told us that it will consider the policy’s effectiveness as part of its wider work on the financial advice market. We recommend that the overall cap of £1,500 should be reviewed and the annual cap of £500 on the amount which can be withdrawn in any one year under the pensions advice allowance should be removed. (Paragraph 93) Enforcement
Government response summary AI-generated
The government response details actions taken by the FCA to increase consumer awareness of investment scams and explains the governance and complaints mechanisms for financial services regulators, but does not address the recommendation to review or remove caps on the Pension Advice Allowance.
Government Response
The government responded to this report on 6 July 2021. No passage in that response could be matched to this recommendation. Read the response document ↗