Pension Wise to receive extra funding

Budget 2015: The government’s guidance guarantee service Pension Wise is set to receive extra funding to help with the demands of the new pension freedom reforms. 

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An additional £19.5 million will be pumped into the service by the Treasury in 2015/16.

It is unclear if advisers will face extra costs because of the additional funding or whether it will come straight from the Treasury.

In January, the government said advisers will have to pay £4 million towards the costs of funding guidance.

The Budget document stated: “Additional funding of £19.5 million in 2015/16 will be provided to support the new pension freedoms and the new pensions guidance service, Pension Wise.

“This funding will extend the availability of state pension statement and pension tracing services.

“It will also provide for extra delivery capacity for Pension Wise: the government has put plans in place in case there is a need to draw on Department for Work and Pensions resources to help manage any initial spike in demand for the service.”