Tpas: Mas directory needs more detail to succeed
The Money Advice Service’s retirement adviser directory must be more detailed in order to improve post-guidance customer outcomes, the Pensions Advisory Service’s chief executive Michelle Cracknell said.
Speaking at FTAdviser’s Retirement Freedoms Forum in London this afternoon (24 February), she responded to a question from Positive Solutions IFA Chis Lee about signposting to advice by stating she hoped development of the directory led to advisers being able to specify which type of business they want.
Ms Cracknell explained that this would mean customers would be more likely to get an advisory firm willing to deal with them in terms of pension pot size and personal circumstances.
She added that more needs to be done to break the misconception that advice costs more than going direct much of the time.
Mas is planning to roll out its retirement advisory directory by the end of March, in time for the pension changes due in April. Firms have been invited to register for the directory online.
Speaking specifically about The Pension Wise service to be offered to retirees alongside the new options from 6 April, Ms Cracknell commented that more people will definitely seek advice after their guidance session.
“People don’t know what they don’t know... the guidance will open people’s eyes.”
During Ms Cracknell’s address she made several pleas to the industry, firstly for a more uniform description of at-retirement options, which would make things more memorable for consumers.
Ms Cracknell also called on the pensions industry to work collectively on common messages and processes to make the move to advice more seamless.
“We’ve got big messaging challenges and need to overcome negative perceptions about the industry. Many people think they’ve already been waiting for 12 months to access their pension pot; cash machine comments certainly haven’t helped.”
Finally, she expressed concerns around marginal tax and the fact that the cheque people receive may not be the amount they are actually due.
“It would be a massive tragedy which would cast a negative light if lots of people end up with an unexpected tax bill.”
Karen Barrett, Unbiased’s chief executive, recently told FTAdviser that guidance services through the Treasury’s Pension Wise brand will primarily be delivered through telephone and digital channels, in spite of the chancellor’s original proclamation of “free face-to-face advice”.
Tpas is to operate remote guidance services and Citizens Advice Bureau will offer 45 minute face-to-face services through 44 hubs nationwide. Mas staff have been seconded to the Treasury to help with the Pension Wise website, which is to be launched next month.
peter.walker@ft.com
