Many oblivious to power over pensions: Grinstead

The managing director of MetLife UK said: “There is a real need for consumer education on retirement income solutions now and in the run-up to April 2015, with a significant role for financial advisers to help deliver.”

Mr Grinstead added that, in response to the pension overhaul, MetLife UK has lowered its minimum to enable more customers to benefit from flexibility and certainty. He added: “We believe guarantees have a major role to play in delivering increased flexibility for retirement savers.”

He also claimed that the new lower minimum contribution for MetLife UK’s market-leading unit-linked guarantees would help provide a flexible alternative for clients who do not qualify to take their entire fund as a lump sum ahead of new rules, due in April 2015.

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The global insurance and annuities provider has also cut the minimum regular contribution to £1,200 a year from £3,600, enabling savers to contribute just £100 per month into their pension.

Adviser view

Steven Robinson, managing director of Bristol-based Clarke Robinson and Co, said: “IFAs are ideally placed to help and provide consumer education. The majority of people don’t shop around and go through companies for their pensions hence don’t get the advice that they would from an IFA.”