Consumer advice must be key to future savings report from Pensions Commission says Consumer Panel

31 January

The Consumer Panel today called on the Pension Commission to press for a general financial planning advice service for consumers to be included in its package of measures to tackle future pension provision.

The Panel believes that the next report on practical solutions for future pension funding must tackle the advice gap. In its response to the First Report of the Pensions Commission, the Panel says how important it is for consumers not only to be given various financial incentives to save in terms of tax relief, but also to have access to impartial advice on what to do in their individual situation. The Panel calls on the Pension Commission to include recommendations on the provision of advice in its next report.

Dianne Hayter, Vice Chairman of the Consumer Panel said:

"Impartial advice for consumers on planning for their retirement is the missing link at present. Consumers will be encouraged to save if they can work it through with some person or system which is well informed, but not interested in selling a certain financial product. "

Notes to editors

1. A copy of the Consumer Panel's full response is available here.

2. The FSA established the independent Financial Services Consumer Panel in December 1998 to advise its Board on the interests and concerns of consumers and to report on the FSA’s performance in meeting its objectives. The Consumer Panel has statutory status. The FSA must consider its representations and, if it disagrees with a view expressed or proposal made in the representation, it must give the Panel a statement in writing of its reasons for disagreeing.

3. The emphasis of the Panel’s work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA’s remit.

4. Consumer Panel brings together a wide range of relevant experience. This includes financial services regulation, working with vulnerable consumers, consumer protection, consumer education, front-line money advice, legal expertise, competition policy, public policy analysis, market research and media.

5. There are currently fifteen members of the Panel as listed below. For further information on individual members, see About the Panel.

   Ann Foster (Chairman)
   Dianne Hayter (Vice Chairman)
   Yvonne Gallacher
   Harriet Hall
   John Howard
   Tony Hetherington
   Stephen Locke
   Nick Lord
   
   

   Nick Pearson
   Adam Phillips
   Paul Salvidge
   Robert Skinner
   Carol Stewart
   Richard Smethurst
   Dave Watts