Speaking at an event hosted by think-tank Reform the former financial secretary to the Treasury said The Pensions Advisory Service (TPAS) could still play a role but would not be able to provide the public with guidance on all the areas needed.
“TPAS has a deep knowledge of a narrow area and they should be involved so we can tap into that level of knowledge,” he said. “However, it is not all about pensions. People will be coming retirement with a number of different pots of money.”
Hoban outlined his view of MAS setting up a Retirement Savers’ Service (RSS) which would help people engage with their finances in the run up to retirement.
Technology would play a key role in delivering the service with users encouraged to supply as much information about their finances as possible with a view to getting a better understanding of their financial position.
Hoban pointed to services provided by Fidelity and Hargreaves Lansdown that harness technology to help people make financial decisions.
Users would be able to access the service online via computer or smartphone though telephone and face-to-face services would also be made available.
“We need to get people looking at the different options for using their assets as well as considering how much security they need and how much they need to remain invested,” he said. “We should encourage people to supply as much information as possible. Once they’ve thought through what they want from retirement the service can then show them the options along with the pros and cons of each option.”
However, he said such a service would only form part of the solution with the industry still playing an important role.
“At this point some people may need to go on to access an IFA but this service is aimed at addressing the group who cannot afford financial advice,” he said. “This service needs to be supported by industry bodies and providers.”
When asked how such a service could be funded Hoban said part of the industry levy that funds MAS could be redirected to help develop content.
