Pension Wise: a nudge is better than a wink towards better guidance
Pension Wise is a free, impartial service – why not use it, says Rebecca O'Connor.
4th May 2021 18:20
by Rebecca O'Connor from interactive investor
Pension Wise is a free, impartial service – why not use it, says Rebecca O'Connor.
Interactive investor, the UK’s second largest direct to consumer investment platform, today welcomes the FCA’s proposals to require pension providers to be more proactive in directing consumers to Pension Wise.
While currently providers are compelled to ‘signpost’ customers towards Pension Wise before they access their defined contribution pension savings, new proposals will instead mean they will have to ‘nudge’ consumers towards the service in order to benefit from guidance. This includes booking an appointment with Pension Wise.
Becky O’Connor, Head of Pensions and Savings, interactive investor, says: “Pension Wise is a free, impartial service – why not use it? Retirement planning is not up there on the list of fun ways to spend time, so we need all the help we can get when it comes to getting it sorted – when it comes to pensions, sometimes it needs to be a shove rather than a gentle nudge.
“Our Great British Retirement Survey last year suggested that only 14% of consumers were using this service, only marginally ahead of getting advice from friends and family (11%). Some 36% of respondents said they do their own research, and 28% use the financial press. But none of this needs to be at the expense of using a free, government-backed service as well.”
Notes to editors
- FCA’s proposal for Pension Wise ‘nudges’ here
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