G'ment consulting on means for paying for pension advice.

[Ginge R]

To allow those approaching retirement to draw £500 (tax free) from their funds to pay for financial advice.

https://www.gov.uk/government/news/new-government-...

[telford_mike]

My ex-employer (and I suspect others do the same) runs pre-retirement courses for employees as they approach 55. I went on one before I retired - it was excellent; a really good day run by professionals. It would have been well worth £500.

[Ozzie Osmond]

Makes sense. Presumably the advantage is the individual effectively gets tax relief on what they spend on £500 advice.

Based on £500,

• 20% taxpayer - actual cost £400
• 40% taxpayer - actual cost £300

[Ginge R]

HMT says thst an adviser can cost £150 per hour on average, and it can take up to 9 hours for advice on pensions. So, it's only a contribution towards the cost, which may end up being higher.

https://www.gov.uk/government/consultations/introd...

[Simpo Two]

Like Legal Aid.

There you go Ginge, you can make a living hoovering up free £500s from the Government! We'll call it £1.37aday.com.

[LeoSayer]

Ozzie Osmond said:

Makes sense. Presumably the advantage is the individual effectively gets tax relief on what they spend on £500 advice.

Based on £500,

• 20% taxpayer - actual cost £400
• 40% taxpayer - actual cost £300

I doubt that many people will add £300 or £400 to their pension to avoid reducing the size of their pension pot.

This is purely about getting advice for people who don't want to reach into their pocket to pay for it.

[DonkeyApple]

Best advice going forward for the majority of people will be to not retire at 55 unless you're pretty confident you'll be dead within 10 years or you have an untouchable final salary scheme.

[PurpleMoonlight]

LeoSayer said:

I doubt that many people will add £300 or £400 to their pension to avoid reducing the size of their pension pot.

This is purely about getting advice for people who don't want to reach into their pocket to pay for it.

You mean like commission used to do ....

[sidicks]

PurpleMoonlight said:

You mean like commission used to do ....