Pension Wise gets extended as Parliament passes bill

Parliament has rubber stamped the extension of Pension Wise. The scope of the Government guidance scheme has been widened to include those using the new secondary annuities market, set to take effect in April 2017.This has been passed this week as part of the Bank of England and Financial Services Act 2016.From 6 April 2017 an estimated five million people will be able to sell their annuity after plans for a secondary annuities market were given the green light in December.Annuity holders wishing to sell will be required to seek independent financial advice for annuities above a certain threshold.The Treasury said in a statement: “The act also makes further important reforms to help consumers by extending the scope of the Pension Wise service, so that pensioners who, from April 2017, are able to sell their annuity income can access free, impartial guidance.”An earlier joint statement from the Treasury and the Department for Work and Pensions read: “With more choice for retirees, it is right that there should be appropriate support. So the government is expanding Pension Wise to cover all those who hold annuities.“For those with an annuity above a certain value, the government will put in place a financial advice requirement to make sure they have the support to make the right decision.“These changes mean more freedom, but also more guidance and support to help people make the decision which is right for them. We are confident that with the support of insurers, intermediaries and purchasers, the secondary market for annuities will develop in a way that best suits the interests of retirees."The Bank of England and Financial Services Act 2016 is the third major piece of legislation that the government has taken through Parliament to fundamentally reform the financial sector.It also includes the extension of the senior managers regime across the financial services industry to all authorised persons, meaning that bosses can be held to account for failings that occur on their watch.

Pension Wise gets extended as Parliament passes bill

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