Pension providers 'not trusted' to give impartial guidance

Pension providers are not trusted to offer impartial guidance on retirement options, according to a new Which? survey. The findings reinforce the need for the Government's guarantee of one-to-one guidance to be genuinely unbiased and neutral and not delivered by the industry, Which? executive director Richard Lloyd said.Overall 65% of respondents did not trust pension providers to offer impartial guidance, with this figure rising to 76% of those aged 55-64.Consumers said they were most likely to trust guidance delivered by an independent body such as The Pensions Advisory Service (63%).The findings come as the Government closed its consultation yesterday on the new pension reforms announced in the Budget.Mr Lloyd said: "The Government's pension reforms could help people boost their retirement income by thousands of pounds.{desktop}{/desktop}{mobile}{/mobile}"But with many unsure about how to get the most from their pension, and not trusting guidance from providers, it's crucial that everyone involved - the Government, advice agencies, the industry and the regulator - put in place a consumer-friendly system that supports people to make the right decisions."Separate research by the organisation found people broadly welcomed the Government's reforms with 72% saying people should be able to do what they like with their pension savings and 61% saying that removing the need to buy an annuity was generally a good thing.However, many weren't confident about what to do with their pension savings.Nearly half were worried they will run out of money by leaving their pension invested and taking money out each year, and a third weren't confident about how much they should take out each year to avoid this.Of those surveyed who weren't yet retired, 76% said they would need advice about what to do with their pension when they retire, and 26% said they didn't know where to get this advice.

Pension providers 'not trusted' to give impartial guidance

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