Asked by: Jack Dromey (Labour - Birmingham, Erdington)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what estimate she has made of the increase in impartial pensions guidance usage following the introduction of the Financial Guidance and Claims Act’s provisions for ensuring savers first receive impartial pensions guidance before accessing their pension savings.
Answered by Guy Opperman
Since its creation in January, the Money and Pensions Service has been working with government and pension providers in developing tests to determine how a stronger nudge into taking pensions guidance would work effectively in practice. Prior to its launch this work was progressed by Pension Wise under DWP.
An independent contractor has been appointed to carry out these tests in partnership with a number of pension providers. An evaluation report will be published this financial year, which will form the basis for which option is selected. Until the report has been published, we are unable to make an estimate in relation to an increase in the expected take up of Pension Wise guidance.
The Money and Pensions service continue to provide guidance appointments via Pension Wise, making 205,000 appointments available across their channels this financial year which would be almost three and a half times higher than Pension Wise’s first year of operation. Pension Wise have been successful in increasing demand for appointments year on year across all its channels.
Asked by: Jack Dromey (Labour - Birmingham, Erdington)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many and what proportion of non-advised pension savers used a face-to-face or telephone appointment with the Pension Wise guidance service when accessing their pension benefits in each of the last four years since its introduction.
Answered by Guy Opperman
Below are the number of people who have sought guidance from Pension Wise year on year. As well as face-to-face and telephone appointments, since 2017 Pension Wise have also provided digital appointments. Information on the proportions of non-advised pension savers accessing their pension is not available. Over 50s with Defined Contribution pensions are eligible for guidance appointments with Pension Wise. Some of these customers may go on to seek independent financial advice.
| Face to Face | Telephone | Digital | Total |
2015/16 | 40,989 | 19,950 | NA | 60,939 |
2016/17 | 48,413 | 17,761 | NA | 66,174 |
2017/18 | 63,185 | 24,289 | 34677 | 122,151 |
2018/19 | 90,448 | 39,667 | 37,611 | 167,726 |
Asked by: Jack Dromey (Labour - Birmingham, Erdington)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what the timetable is for pension savers to start benefiting from the provisions of the Financial Guidance and Claims Act 2018 for ensuring that those savers receive impartial pensions guidance before accessing their pension savings.
Answered by Guy Opperman
Since its creation in January, the Money and Pensions Service has been working with government and pension providers in developing tests to determine how a stronger nudge into taking pensions guidance would work effectively in practice. Prior to its launch this work was progressed by Pension Wise under DWP.
An independent contractor has been appointed to carry out these tests in partnership with a number of pension providers. An evaluation report will be published this financial year, which will form the basis for which option is selected. Until the report has been published, we are unable to make an estimate in relation to an increase in the expected take up of Pension Wise guidance.
The Money and Pensions service continue to provide guidance appointments via Pension Wise, making 205,000 appointments available across their channels this financial year which would be almost three and a half times higher than Pension Wise’s first year of operation. Pension Wise have been successful in increasing demand for appointments year on year across all its channels.