Government Should Pay Guidance for Year

Government Should Pay Guidance for Year.

MGM Advantage has suggested that the government should pay for the first year of the new pension guidance scheme rather than charging the industry a levy.

The new pension guidance will allow retirees to get free advice on their pension and their choices. The new rules will come into effect in April 2015 and MGM Advantage made the suggestion in reply to the Financial Conduct Authority’s (FCA) consultation on the scheme.

The annuity provider suggested that the government should pay for the scheme for the starting year, as industry levies cannot be set until 2016/17. It said that the first year should be used as to gather information on the scheme’s take up and benefit to other areas.

As well as this the provider supported a concept of a single page pensions passport which would allow pension guidance providers to get all the information it needed to find the best value for customers.