“Individuals will be able to get up to £500 from their employer to cover the cost of advice, as well as accessing £500 of their pension pot early. Combining the two means consumers will have access to £1000 to fund the cost of advice, with half the money coming from the company they work for. This should mean that anyone who wants advice can afford to pay for it. It is key that employers are urged to consider offering staff the full £500, a cost-effective way of helping their employees plan for life after work.
“Government has also indicated it will commission firms and charities to provide guidance in future, rather than government offering those services under its own brand, such as the Money Advice Service. This should create competition among businesses and not-for-profit organisations to come up with effective financial guidance services. This means the success of guidance services can be closely monitored, with successful programmes awarded further funding.
“In order to fully address the advice gap, it is important that we facilitate growth in the advice sector. Reform of the Financial Services Compensation Scheme and other measures designed to reduce the cost and compliance burden on firms will be extremely important in making this happen.”