The Pensions Advisory Service and Citizens Advice will provide the service and will be running pilot schemes prior to April, to learn what works and get feedback from participants.
People can register their interest in taking part in the pilot schemes at www.gov.uk/pensionwise.
Ros Altmann (pictured), a champion for older workers, said today’s announcement still leaves unanswered questions.
She said: “We do not yet know the content covered by the guidance; what those who give the guidance will be called; what information will be needed before booking an appointment; or what hours the service will operate.”
Altmann added how many people are expected to take up the guidance and what the written guidance session record will look like also remains unknown.
Altmann, a veteran pensions consultant, also said relying on providers to ‘signpost’ to guidance is not enough.
“The Financial Conduct Authority findings of providers failing to alert customers properly to their open market option to shop around for a better annuity, strongly suggests pension providers cannot be relied on to ensure people make the most of the guidance. Even a standard piece of paper in wake-up packs is unlikely to be sufficient.
“There needs to be an extensive campaign to ensure ‘Pension wise’ becomes a strong recognised trusted brand.
“Increasing financial awareness is long overdue and the pensions industry has taken advantage of poorly-informed customers for far too long.”
