Government to launch £1,500 Pension Advice Allowance

The new Pension Advice Allowance, first announced at Autumn Statement 2016, will enable people to withdraw £500 up to three occasions, but only once in a tax year.

The Allowance is designed to give savers access to retirement advice at different stages of their lives, for example when first choosing a pension or just prior to retirement.

It will be available at any age and can be redeemed against the cost of regulated financial advice, including robo advice.

The government confirmed that the Allowance will be available to holders of DC pensions and hybrid pensions with a defined contribution element, not DB or final salary type schemes.

Economic Secretary to the Treasury, Simon Kirby, said: "Pensions and savings decisions are some of the most important a person will make during their lifetime.

"This allowance will help people get the vital financial help they need to plan for their retirement."

David Stevens, Director of Advice Strategy at LV=, added: “The Government is absolutely right to allow people to access money from their pension pot to pay for advice and it’s positive this reform covers both traditional and ‘robo-advice’ to meet consumers’ changing habits.

"We know that the upfront cost of advice can be a major barrier for consumers and today’s announcement should ensure that more people can get the help and support they need. Professional financial advice is vital for retirement planning to help people make the right decisions for them and ensure consumers get the most from their hard-earned savings.”