AIFA calls for pensions advice

Amanda Jarvis

May 2, 2006

Chris Cummings, director general of AIFA, said: “Advice is the essential component for the successful delivery of the government’s pensions’ policies. So far the role and value of advice has been left out of the equation. From today, its true worth must be recognised.”

AIFA’s call comes after the publication of the Pensions Commission’s final report, where Lord Turner’s comments focused on the need to explain clearly what the National Pensions Savings Scheme (NPSS) could and could not deliver.

Cummings continued: “Providing employees with information only cannot hope to address the complexity of pensions – especially in this time of great change. While we support the notion of auto-enrolment, on its own it is not enough. Consumers will want to know about how the NPSS will affect their previous scheme contributions, their AVCs, and what to do if they marry, have children, or are approaching retirement. In a nutshell, they need advice.

“The Pensions Commission has produced some excellent, thought provoking work, and has raised the importance of a serious pensions’ debate. We have seen that when consumers are confronted with the issues, IFAs can help clients get past the blocks of inertia and the fear of future financial failure. The role of advice plays a central role in any discussion about pensions and is too important not to be considered in the debate about the NPSS.”

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