FREE GUIDE THROUGH THE PENSION MAZE

WHEN the Chancellor unveiled the sweeping reforms, he set up Pension Wise, an official guidance service for people looking for free help in understanding the new rules. It was launched for those aged 55 and older, but was met with scepticism and criticism because it cannot give formal financial advice. It endured a second attack because so few retirees have booked an appointment. Since the launch of the freedoms, data shows that just one in ten investors has had an appointment with Pension Wise. It is now being tweaked to try to improve its service and ensure it is more widely used. The minimum age for those allowed access to Pension Wise has been reduced to 50. Last month the Government announced that responsibility for Pension Wise was being passed from the Treasury to the Department for Work and Pensions. Meanwhile, there have even been problems for those who have sought help from professional advisers. Many have found they can’t get advice because they haven’t built up a large enough nest egg. Typically, they were told they needed to have more than £50,000. It’s not just those with smaller pots who’ve struggled to find help. Savers who want to take advice on some alternative strategies, such as withdrawing the money to fund a buy-to-let property, have found they cannot get an adviser to sign off the deal. Many advisers refuse to put their name to alternative or seemingly risky strategies for fear of being the target of complaint in years to come if the new investment failed to produce desired returns. And without the adviser’s recommendation, the insurer won’t allow the money to be released.