The new government must place the reform of pensions guidance high on their agenda to encourage greater take-up of advice, MetLife has said.

According to an independent study by MetLife, less than one in four, 23 per cent, of over-55s find the Pensions Advisory Service useful and only 16 per cent say Pension Wise is useful for pension freedom and retirement planning. A greater majority, 40 per cent, of this age group are not seeking any guidance or advice on their retirement options.

The research, which is Part 2 of the MetLife’s report Making Pension Freedom More Effective, found that around 71 per cent of over-55s want more options for retirement income, while 74 per cent of advisers are calling for more innovation in retirement income solutions to address volatility risks.

MetLife’s findings come in the midst of the formation of the new UK government and the appointment of Pensions Minister Guy Opperman, who will be involved in establishing a unified guidance organisation, combining TPAS, Pension Wise and The Money Advice Service.

Two out of three advisers, 66 per cent, say that meeting the need for income in retirement is the biggest challenge for advisers, while 47 per cent of over-55s are concerned about paying too much tax.

MetLife UK wealth management director Simon Massey said: “The new Pensions Minister has a wide range of issues to tackle but top of the agenda should be providing a guidance service which can build on the successes of the past two years and help deliver real pension freedom.”

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