In addition, 18% said they were not eligible and only 29% said they knew they could use the service.
Rather than a rejection of the concept, this appears to be lack of education as 41% said ‘they did not know where they would go for ‘guidance or information’ with regards to pension planning. One in five (21%) said they would look to their pension provider which is a natural reaction but one which may mean that due to inertia they don’t look at all their options and do not receive the most appropriate product for their situation. Others (17%) would ask their family and friends for help.
Others would take an arguably more sensible approach with 18% saying they will speak to a financial adviser and a further 18% looking to online resources such as moneysavingexpert for help. Just 5% said they would look to the Guidance Guarantee service for assistance.
Andrew Megson, Managing Director of Retirement, Partnership said:
“Only 23% of people knew that they could use the guidance guarantee service which suggests that there is a huge need for education around the new pension regime. Much of the discussion has focused on the new freedoms but ultimately these are not going to be properly taken up if people don’t fully understand their rights and responsibilities under the new system.
“Some people will naturally speak to their financial adviser and get the benefit of specialist advice but we are concerned about those who may have modest pension pots and little margin for error. It is vital that as the industry seeks to develop products, the Government ensures people understand that they are eligible for free impartial guidance which will help them to make the most of their retirement finances.”
