The Money and Pensions Service (Maps), alongside the Behavioural Insights Team (BIT) are expected to publish an evaluation report on recent trials designed to encourage greater uptake of Pension Wise guidance in Summer 2020.

The trials undertaken by Maps have already gathered evidence on the possible ways to help encourage more people to take Pension Wise guidance, fulfilling the requirement upon the government and the Financial Conduct Authority (FCA) as set out in the Financial Guidance and Claims Act 2018.

In response to a parliamentary question, Pensions Minister Guy Opperman, confirmed that analysis from the trials would be used to inform further developments, with a consultation also expected before any regulations are implemented.

Opperman explained that senior officials at the FCA, Department for Work and Pensions (DWP) and Maps were working "closely together" to explore potential regulations that would direct pension savers to Pension Wise when they choose to access their pension savings.

He stated: “We will use the evidence provided from the trials to help inform and assess the impact of the trials and conduct a consultation prior to implementing any regulations.

“For the FCA this also includes a duty to consult on the proposed rules. The due processes that DWP must take to lay regulations and the FCA must take to make rules will be followed.”

This also follows recent guidance from The Pensions Regulator which calls on trustees to warn savers against transferring from a DB scheme amid the pandemic, pointing them to services from The Pensions Advisory Service and Pension Wise.

Further clarifications have also been provided on the impact of Covid-19 on pension schemes, and the support available for members, with Economic Secretary to the Treasury, John Glen, confirming that the government is "actively considering" what action it can take to protect the markets and broader public.

Glen clarified that consumers who are already taking a retirement income via an annuity will not be affected, and that any reliant on a DB pension will not see a decline in the value of the income they are paid.

However, he stated that whether or not the act of being furloughed would affect member benefits for those in DB schemes would be dependent on individual schemes.

He explained: “Many schemes have provisions in place to account for reductions in income in the years leading up to retirement without it affecting their pension if, for example, members choose to work fewer hours ahead of retiring.

“How each scheme works is a matter for the trustees and the sponsoring employer.”

He added that whilst value of many investments has fallen “significantly”, with investment volatility “expected for some time to come”, savers must remember that investments are for the long term.

Reiterating the regulators' recent joint statement, Glen also urged savers to “take their time” and access guidance from the Pensions Advisory Service before making decisions.

Glen added: “The government is already taking a wide range of steps to support the macro-economy, ensure financial stability and the provision of social safety nets.”

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