A Work and Pensions Select Committee of industry leaders has given evidence to MPs supporting an opt-out automatic booking system for Pension Wise sessions. Pension Wise is a government service from MoneyHelper that offers free, impartial guidance to individuals about their defined contribution pension options. Take up of Pension Wise guidance is lower than expected and industry experts believe the automated system is a way to boost participation.
Stuart Price, Partner at Quantum Advisory, agrees with the evidence given and sees the automatic booking system as a positive way forward. Stuart said: “Pension Wise is a great service that helps people understand their retirement options when accessing their defined contribution pension savings – a topic that there is much confusion about. Those who use the scheme are exceedingly positive about the experience, but, unfortunately, there just aren’t enough participants. The automated booking system seems like a logical step to include anyone who may need the help and advice the appointments provide as it cuts out the fuss of individuals needing to physically book the appointment themselves. It also gives those who are unsure or nervous, the necessary push to open up about needing help.
“Not only will the automation of the scheme help individuals, but there would also be a commercial benefit to the industry from having a more engaged and educated customer base.
“Rt Hon Stephen Timms MP, Chair of the Work and Pensions Committee, has brought this idea to Parliament before and had it overturned, however, the widespread industry support now building will hopefully allow it to become a reality soon.”
8 July 2021