Calls for UK to have ‘National Wealth Service’

Former Downing Street adviser Ros Altmann has suggested a national system of retirement guidance could be put in place in time for radical changes due to come into force next April, which will free people up to take their pension pots how they want.

The Government has said people will get free impartial guidance to help them decide what to do with their money, and the pensions industry has urged Ministers to decide soon exactly how this will be delivered.

In the Flexibility In Retirement report, Dr Altmann suggests a national network could be in place by April 2015, which could expand to include property wealth, savings and debt managements.

Dr Altmann said: “To make the new freedoms work for individuals, a revolution in the provision of financial education, information and advice is required. There is a massive opportunity to be grasped by financial advisers and the industry.”

The report also found that the pension reforms announced in the Budget have sparked an appetite for saving – with around one quarter of people planning to start or increase pension saving.

Meanwhile, a survey has found only around one in five savers knows what interest rate they are being paid. The research by Which? is urging providers to “scrap the savings trap”.

Just 17 per cent of those with savings could pinpoint the exact rate they are on according to the consumer group, which is pressing banks and building societies to give better information to customers about both what rate they are on and when any particular bonus or fixed rate comes to an end.