New pension service launched
A new free and impartial pensions guidance service, Pension Wise, has been launched. The new service is being run jointly by The Citizens Advice Bureau (CAB) and The Pensions Advisory Service (TPAS). The launch of this new service follows the launch of wide-ranging changes for individuals that have pension savings in a Defined Contribution (DC) scheme, such as a personal pension.
The changes which will come into effect from April 2015 will give savers the choice of whether to purchase an annuity or make withdrawals from their pension pot. This can be for up to the full amount of money held within their pension pot and the Government was anxious to provide free and impartial advice to allow retirees to make the most of the new pension freedoms. Over 300,000 individuals a year with DC pension savings will be able to access them as they wish when they turn 55.
The Pension Wise service will launch shortly and will provide help via a website, over the phone and face to face. The main advice the organisation will provide will focus on what you can do with your pension pot, the different pension types and how they work and what’s tax-free and what’s not.
The Economic Secretary to the Treasury Andrea Leadsom said:
‘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.’