ABI proposes Pension Wise reforms

Ryan Bembridge

December 23, 2015

The Association of British Insurers has told the government  to reform Pension Wise service.

The ABI said customers should be given an optional Fact Find at Pension Wise meetings which they can take to advisers, reducing the cost of that advice in the process.

It also advised for Pension Wise and voluntary pensions organisation The Pensions Advisory Service to merge.

Pension Wise has already come under scrutiny from much of the equity release industry since its launch on 6 April for failing to bring up housing wealth as a key source of income in retirement.

The ABI proposals came in response to the Financial Advice Market Review launched by the Financial Conduct Authority and HM Treasury which has the aim of improving access to professional financial advice.

The review will look to make proposals to the government ahead of Budget 2016 after consulting with the industry.

James Bridge, assistant director for conduct regulation at ABI, said: “Consumers who are supported to make informed choices are more likely to end up in a stronger financial position and make better choices to safeguard their finances. There is evidence that some customers are currently unable to access the advice they want or need.

“This review provides a significant opportunity to ensure that customers can make the best financial decisions to suit their circumstances. The range of solutions we have proposed aim to make advice easier and cheaper to access, and improve the quality of, and access to financial information.”

Sign up to our daily email