When it comes to pensions, there are several free services available to help you understand your options. One of the most important is Pension Wise, a government-backed guidance service designed to support people as they approach retirement.
Pension Wise is a free service from MoneyHelper, a government-backed organisation that provides impartial financial guidance. It is available to people aged 50 or over who have a defined contribution pension.
The aim is to give you clear, accessible information about the choices you have when it comes to taking money from your pension.
Pensions can be complicated, and many people are unsure about the options available to them when they reach retirement age. Pension Wise was created to bridge this gap, helping people feel more confident and informed about their choices.
The service is part of a broader effort by the government and regulators to ensure that savers are supported when accessing their pensions, and that they understand the potential implications of their decisions.
You can book a Pension Wise appointment directly through the MoneyHelper website or by phone. Appointments are free and usually take place over the phone or via their live chat service. During the session, a guidance specialist will explain the different ways you can take money from your pension and answer general questions.
It is important to understand that Pension Wise offers guidance, not financial advice. This means:
They explain the different options available.
They provide impartial information to help you understand how pensions work.
They do not recommend what you personally should do or which option is best for you.
If you want tailored recommendations, that can only be provided by a regulated financial adviser, not Pension Wise.
To make sure more people benefit from Pension Wise, the Financial Conduct Authority (FCA) introduced the stronger nudge rules in 2022. This means that when customers aged 50 or over contact their provider to access their pension, the provider must:
Offer to book a Pension Wise appointment for them,
Clearly explain that the appointment is free and impartial.
Customers can choose to take up the appointment or opt out, but providers are required to make the offer as part of the process.
At the end of a Pension Wise appointment, you will be given a unique reference number (URN). This acts as confirmation that you have received guidance. If you later decide to access or withdraw from your pension, providers will usually ask for this number as part of their process.
The URN helps providers meet their regulatory obligations, and it shows that you have been offered impartial guidance before making any decisions.
Pension Wise plays a vital role in supporting savers by making pension options clearer and easier to understand. While it is not financial advice, it gives people the knowledge they need to feel more confident when thinking about their retirement choices. The stronger nudge and the use of the URN ensure that more people are aware of the service and that providers can follow the correct steps when customers access their pensions.
With pensions, your capital is at risk.