The Low Incomes Tax reform Group said the Government was offering to invest £20 million invested in a guidance service over the next two years to help older people with defined contribution pension pots make the right decisions.
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It said: "About 320,000 people retire each year with such savings, which works out at about £30 for each person over the two-year period. This is clearly inadequate, given that the market rate per hour for professional pensions advice usually exceeds £150. This also begs the question of what happens after the two years are up. The Government needs to acknowledge these points and consider a sustainable investment in information services, or risk exploitation of people's hard-earned savings by market sharks."
The Association of British Insurers said any industry-funded guidance service would inevitably be "shallow". Standard Life said the £150 tax-deductible employer's allowance for workplace financial advice should be raised to £250.