Proposal for £500 advice at retirement is a 'gimmick', say Moneywise users

Unhappy man

Plans to enable retirees to take £500 tax-free from their pension to put towards advice have been hailed as a “gimmick” by the majority of Moneywise.co.uk users.

The Treasury last month published a consultation on creating a Pensions Advice Allowance, enabling people to take £500 tax-free from their defined contribution (DC) pension to redeem against the cost of getting regulated financial advice.

But half (50%) of those who we polled between 6 and 13 September said the initiative wouldn’t encourage them to get retirement planning advice as it’s a gimmick, and it will only provide a small reduction to the overall cost of advice, which is expensive as it is.

 

A further 24% added that the scheme wouldn’t encourage them to get retirement help as they’d seek professional advice at retirement anyway - whether there is a discount or not.  

However, just over a quarter (26%) of the 453 people we polled said the perk would encourage them to get retirement advice, as any advice is a good thing.

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