Just 23% find current pension guidance service useful

When asked which websites were useful for pension freedom and retirement planning, fewer than one in four over-55s (23%) found the Pensions Advisory Service useful while just 16% say Pension Wise is useful. Two out of five (40%) savers are not seeking any guidance or advice on their options.

Speaking to Financial Reporter, a DWP spokesperson stressed that the Pension Wise website is "certainly not the Pension Wise service as a whole, which is primarily by telephone and face-to-face appointments".

The findings come as new Pensions Minister Guy Opperman takes up his role which will include creating a new organisation for guidance bringing together The Pensions Advisory Service, Pension Wise and The Money Advice Service.

The other major challenge identified by MetLife's research was a 'lack of innovation' since the launch of pension freedom more than two years ago. Around 71% of over-55s want to see more options for retirement income while 74% of advisers are calling for more innovation in retirement income solutions to address volatility risks.

Around two out of three advisers (66%) say the meeting the need for income in retirement is the biggest challenge for advisers while half (47%) of over-55s are concerned about paying too much tax.

Simon Massey, Wealth Management Director at MetLife UK, said: “The issues that worry consumers the most include minimising tax bills and ensuring that their money does not run out in retirement.

“The concern for savers relying on drawdown is that funds and income can reduce as a result of investment market volatility or overspending which is where guidance and advice can provide vital support.

“The new Pensions Minister has a wide range of issues to tackle but top of the agenda should be providing a guidance service which can build on the successes of the past two years and help deliver real pension freedom.”