Pension ‘wake-up’ packs prove ineffective as ‘stronger’ amendments are made in the Commons

Pension assets are crucial for retirement and as such, savers are regularly encouraged to engage with their pots and manage them effectively. However, it can be easy to forget about or lose track of these pots and this problem has come under scrutiny in recent months.

However, the “nudge” itself would still just be advisory and as such, Stephen Timms, the Chairman of the Work and Pensions Committee proposed an amendment to the bill involved.

In a nutshell, the amendment proposed changes that would ensure pension scheme holders would receive a Pension Wise appointment prior to accessing pension funds.

In response to DWP’s plans, Mr Timms said: “Pension Wise offers a hugely valuable service for the pension savers who use it: nearly three quarters of them make a different decision after having its guidance.

“But unfortunately only a very small proportion of savers speak to Pension Wise.

“That leaves huge numbers of people at risk of making the wrong decision about accessing their pension savings—risking a lower quality of life in retirement and, in the worst case scenario, losing all of their pension savings to scammers.

Pension Wise itself is an impartial guidance organisation that can help people better understand their pensions and options.

Bookings can be made with the organisation over the phone or online and a specialist will go through a person’s pension options in an appointment lasting around an hour.

To book an appointment, people will need to be aged 50 or over and have a UK-based defined contribution pension.

Pension Wise does not provide guidance on defined benefit pensions (also known as final salary schemes) and if people need help with them, they will need to go to the Pensions Advisory Service instead.