Friends Life calls for urgent action on retirement guidance

Friends Life believes that the decision is needed quickly following the closing date for consultation submissions on Wednesday 11 June to allow the maximum time to plan and implement the new arrangements so that there is a smooth transition, and so that consumers get the support they need to deal with the increased flexibility that the new rules provide.

The company believes that the guidance guarantee should be provided by a central utility, building on the existing capabilities of the Pensions Advisory Service, the Money Advice Service and Citizens Advice, to ensure true impartiality which is in the best interests of the consumer.

In addition, Friends Life is calling for consumers to be provided with a standardised action plan resulting from the guidance they receive so that there is a consistent transition to whichever adviser or provider the consumer chooses to deal with after receiving their guidance.

Andy Briggs, Group Chief Executive of Friends Life, said:

“It is vitally important that we have clarity on the mechanism for delivering the guidance guarantee as quickly as possible and that the pensions industry works together with the Government to ensure a smooth and efficient delivery of the new arrangements.

“This can best be achieved if guidance is delivered by an independent central utility demonstrating true impartiality for the consumer. We have a real opportunity to build greater trust among consumers by ensuring a smooth and efficient implementation of the new pension arrangements. A consistent and standardised approach to the delivery of the guidance and to the format of the action plan resulting from it is the best way to make the process effective for consumers, advisers and providers alike.”