David Gauke, Financial Secretary to the Treasury, has said he is not expecting a “sudden surge” in people expecting financial advice in April because of pension changes.
Mr Gauke was addressing the first meeting of the Taxation of Pensions Bill Committee in Westminster on Tuesday.
Answering a question from Labour MP Chris Evans – a former financial adviser – he said the industry will be ready for the new freedoms which the Bill introduces.
He said: “The point I would make here is that it is going to be an important period of time for financial advisers, but we shouldn’t think this is one where there will be a sudden surge at the beginning of April.
“Next year we will see it gearing up.”
Speaking at the meeting, Mr Gauke added that he believed the new service in terms of the guidance guarantee would be “complementary” to independent financial advice and would point people in the right direction.
A series of hearings on the Bill will now be held, and the committee is expected to report back to the House of Commons by 20 November.
Matthew Lammas, an IFA with Essex-based Capel Court, said: “The type of people who have pensions where they are likely to require advice may already have advisers anyway.
“I genuinely don’t know, until we get nearer the time, whether the rules will be as they have been sold to us and the general population, or whether there will be changes.”