Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the affordability of independent financial advice for members of pension schemes with safeguarded benefits who are required to take advice under section 48 of the Pension Schemes Act 2015.

The Pensions Schemes Act 2015 requires that members of pension schemes with safeguarded benefits take independent financial advice before accessing their pension pot flexibly, where the total value of the member’s benefits exceeds £30,000. These pensions offer a high level of security and guarantees that should not be relinquished without consumers being supported to make an informed choice about the risks.

In 2019, the Financial Conduct Authority (FCA) found that consumers who took advice from firms that charged on a non-contingent basis typically paid £2,500 - £3,500 for advice.

There are a variety of resources available to help consumers shop around for an advice firm that best meets their needs, including MoneyHelper’s Retirement Adviser Directory.