The UK government announced new tax incentives to encourage people planning retirement for financial advice.
Payment of the pension which will be offered from April 2017, will allow those who are approaching retirement age take 500 pounds out of their retirement savings to financial advice. This is intended to give people the opportunity to get advice on all financial products that contribute to their retirement income, such as pension multiple baskets and other assets such as individual savings accounts.
The study showed that when approaching retirement only 22% of people know the value of their pension baskets and only 14% of people confidently plan aims his retirement without financial advice.
Economic Treasury Secretary Simon Kirby said: “Pensions and savings decisions are among the most important moments in their lifetime, so it is vital that people could access financial assistance they need it and feel confident in choosing support that works for them when they retire.”
“I look forward to interacting with these consultations and take this opportunity to say how the payment can best meet the needs of both consumers and companies.”
The payment of the pension board was first announced in Budget 2016 after recommendations from consultations on financial issues given market (FAMR), which suggested that high-quality financial advice can make a significant impact on pension income if the council received honourable early.