What is Pension Wise?

Full Definition

Pension Wise is a free guidance service, backed by the government and delivered through MoneyHelper (alongside partner organisations including Citizens Advice), that offers people aged 50 or over with a defined contribution pension a free, impartial appointment -- available by phone or face-to-face -- to talk through the options for accessing their pension savings. An appointment typically covers the main ways a defined contribution pot can be used (leaving it invested, taking a tax-free lump sum, moving into drawdown, buying an annuity, taking the whole pot as cash, or a combination), the tax implications of each choice, and pointers on scams and where to get regulated financial advice for a personal recommendation, since Pension Wise itself provides guidance rather than advice and will not recommend one specific option over another for an individual's circumstances. Since 2022, pension providers have been required to proactively refer members to book a Pension Wise appointment, or explicitly confirm they have declined the offer, before allowing them to access their pension flexibly for the first time, reflecting concern that too many people were making irreversible decisions -- such as cashing in a whole pot and losing valuable guaranteed income options, or triggering an unexpectedly large tax bill -- without understanding the consequences. Pension Wise guidance is entirely free and does not replace regulated independent financial advice, which is chargeable but can give a personalised recommendation tailored to an individual's full financial circumstances, health, and other income and assets.

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