As long as we have the complications of money purchase annual allowance there will always be several people for whom keeping small pots will deliver flexibility in accessing pension pots but navigating the morass of complex rules will never be easy without advice from an expert.
Transforming the future of finance
The introduction of pension dashboards will be a major milestone in helping to transform the retirement savings landscape. It should be a force for good, at the very least re-uniting millions of pension pots with their owners, and there is no doubt that the new dashboards will nudge savers to seek advice to ensure financial security for later in life.
The dashboard programme also provides new scope for companies in creating fresh business models in anticipation of the increased interest from clients around planning for the future. Additionally, employers can use this as a chance to refresh engagement among colleagues, providing training and learning opportunities to ensure advisers can use the new tools effectively.
Companies and advisers that take this positive approach and keep an eye on the dashboard programme updates will be able to nurture existing relationships and attract new clients across all generations.
Robert Cochran is senior corporate pension specialist at Scottish Widows
