• The Single Financial Guidance Body will be renamed the Money and Pensions Service (http://www.legislation.gov.uk/uksi/2019/383/pdfs/uksi_20190383_en.pdf)
• New organisation combines The Money Advice Service, The Pensions Advisory Service and Pension Wise
• New organisation has a crucial role to play in providing information and help savers and retirees
Tom Selby, senior analyst at AJ Bell, comments:
“The Government has dodged any potential controversy around the use of the word ‘advice’ in the name of the new guidance body by steering clear of it altogether. Given the negative attention this drew when the Money Advice Service first launched this feels like a sensible decision.
“The new Money and Pensions Service will have a vital role to play in providing free, impartial guidance to people about retirement saving. Ensuring as many people as possible make well-informed financial decisions both when building up a fund and drawing an income is crucial to ensuring good retirement outcomes.
“The launch of the new, simplified guidance service provides an opportunity for the industry as a whole to renew focus on retirement communications. There is a growing body of behavioural research pointing to the fact the existing framework – which often sees savers bombarded with pages and pages of information – fails to improve engagement.
“Measures announced as part of the Retirement Outcomes Review to reform wake-up packs are a step in the right direction. Greater simplification in this area has the potential to make pensions more accessible and switch people on to the benefits of retirement saving.”
