'Internet is the way to provide guidance guarantee'

A director of a pensions firm has backed the idea of providing the Government's promised guidance guarantee online. Colin Bell, product director at Aegon, believes the internet offers a realistic and cost effective way to provide the help to retirees plan how to use their savings.Addressing delegates at Westminster & City Retirement Income conference, he said: "Online guidance is an opportunity to deliver this advice to a great many people, at a lower cost."{desktop}{/desktop}{mobile}{/mobile}Intelligent Pensions, the specialist pension and retirement advisers, also supported online guidance last week.The company told the Government in its official consultation response: "We do not think 'face to face' guidance is practical and would suggest that this be changed to 'one to one' guidance which can be delivered via a telephone call or via an internet connection, such as using Skype."The consultation has closed and many experts, firms and organisations have given their views on how the guidance guarantee should be delivered, as the Coalition works out how best to implement its plans.Mr Bell also believes it is important the guidance is delivered by a third party.He said: "Providers should certainly be included in creating this framework, but cannot be solely responsible for delivering it."Speaking about the pension reforms more broadly, he said: "It is still too early to say for definite where the market is going, following the monumental Budget shake up in March."What's really important is that the new pension freedom many are now experiencing is not lost in the complexity of tax."Most retirees will make sensible choices when it comes to accessing their pension pot, but they will need help and guidance to avoid suffering any financial consequences of erroneous decisions, particularly around tax liabilities once they have withdrawn money."Those with smaller pension pots may find that they end up relying on the flat rate pension, which may not be enough – particularly as we are living longer, so retirements are longer."He believes drawdown 'frightens' many due to the perceived investment risk associated with it.He said: "Providers should look at how they can help those wishing to secure a lifetime income, whilst also making most of market fluctuations."

'Internet is the way to provide guidance guarantee'

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