Fewer than one in five over-55s have found guidance from The Pensions Advisory Service, Pension Wise and the Money Advice Service useful, a report by MetLife has found.
The report found less than a quarter (23%) of retirees found The Pensions Advisory Service useful, while a mere 16% said the government’s free at-retirement guidance service Pension Wise was a useful tool for retirement planning. A further 16% said the Money Advice Service had been useful to them.
MetLife’s report Real Pension Freedom: The Delivery Scorecard surveyed 960 over-55s and 109 specialist retirement advisers in October 2016.
It detected a series of challenges for the government in tackling the issues surrounding the current consumer guidance system and its plans for merging the three bodies into one.
MetLife UK wealth management director Simon Massey said: “The new pensions minister has a wide range of issues to tackle but the top of the agenda should be providing a guidance service which can build on the successes of the past two years and help deliver real pension freedom.”
Plans to merge the current three guidance bodies into one were confirmed in last week’s Queen’s Speech. The project will be overseen by new pensions minister Guy Opperman.
More innovation needed
MetLife’s report also emphasised a need for greater innovation within the retirement space, felt by both professionals and consumers.
Almost three quarters (74%) of advisers felt there had not been enough innovation, alongside 71% of consumers, particularly in the retirement income space.
It also found consumers to be more competent than advisers give them credit for.
Advisers estimated just 39% of over 55s were ‘very aware’ of pensions freedoms, however more than half (55%) of the over 55s surveyed said they were very aware of the reforms.
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