New pension protection rules to come into force this summer

New laws preventing savers from accessing their pensions pots without proper advice will come into force later this year.

The rules – which come into effect on 01 June 2022 – will ensure that pensions funds are used with care and do not fall into the hands of criminals.

Known as the “Stronger Nudge to pension guidance”, the measures will require occupational pension schemes to present guidance as a routine part of accessing pension savings.

Scheme managers will also be obliged to offer to book a Pension Wise appointment for the individual, unless they wish to “opt out” of receiving guidance.

Pension Wise is a free Government service that offers impartial pensions guidance about defined contribution pension options to individuals over the age of 50.

Commenting on the measures, Minister for Pensions and Financial Inclusion Guy Opperman said: “We want guidance to be available to savers when making decisions about accessing their pension pots.

“These new measures support savers and further this government’s commitment to ensuring people across the country have the necessary support and information they need to make informed choices about their financial futures.”

The new rules come after the introduction of Pension Freedoms in 2015, allowing savers to flexibly access their pension funds from the age of 55.

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