Minister for Pensions Laura Trott, said: “It’s essential that people have the support and information they need to make informed choices about their financial futures, particularly in challenging economic circumstances, so I welcome TPR’s guidance statement.
“I’d also encourage all savers to take advantage of the free and impartial guidance available via MoneyHelper and Pension Wise, especially those approaching retirement.”
Carolyn Jones, head of money and pensions guidance at the Money and Pensions Service, said TPR’s “timely and welcome statement” will provide crucial guidance during these challenging times.
“Pensions can be complex and the decisions people make can have long term effects, so it’s important for them to seek help before rushing into anything, no matter how large or small their pension pot is,” she said.
This comes following the Pensions and Lifetime Savings Association’s retirement living standards which revealed that retirees trying to achieve a basic standard of living saw their expenditure increase over the past year by almost 20 per cent due to high inflation.
Joe Dabrowski, deputy director policy at PLSA, said the past year has been an enormously challenging one for many households in the UK given the rise in inflation levels and the continued increase to the cost of living.
“The launch of this guidance by TPR is both extremely helpful and timely,” he said.
“We’d urge schemes to take note of this important document and engage with it for the benefit of savers.”
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