Pension wise will be a first port of call for consumers, offering free and impartial information and guidance to people with a defined contribution pension approaching retirement.
From April 2015, over 300,000 individuals a year with defined contribution pension savings will be able to access them as they wish from when they turn 55.
The creation of Pension wise follows the announcement by Chancellor of the Exchequer George Osborne in the summer that the government will provide access to free and impartial guidance on how to make the most of the new pension freedoms, which come into effect in April 2015.
Economic Secretary to the Treasury Andrea Leadsom said:
“People who have worked hard and saved all their lives will be free to choose what they do with their money from next April.”
“We want people to be empowered to make informed and confident choices and I’m delighted to announce Pension wise: Your money. Your choice as the brand name for the impartial guidance service we are building.”
“Pension wise will be a first port of call for people with a defined contribution pension who are approaching retirement. It is a distinctive brand, making it easy for consumers to know where to go for help and guidance.”
The government’s delivery partners are Citizens Advice (England and Wales), Citizens Advice Scotland and Northern Ireland Association of Citizens Advice Bureaux and The Pensions Advisory Service.
In order to protect consumers from imitators of the service and ensure the guidance brand is trusted, the government will make the imitation of Pension wise illegal through the Pension Schemes Bill. Anyone seeking to pass themselves off as the service could face prosecution.
In addition, The Financial Conduct Authority, which was set up by the government, is working hard to tackle pension fraud. It has strong powers to prosecute those behind illegal scams and earlier this year launched scam awareness campaign Scamsmart.
