The two words advice and guidance appear interchangeable, but
they aren’t.
Earlier this year HM Treasury formally launched Pension Wise,
its service to offer consumer guidance on the new pension rules.
The standard 45 minute Pension Wise session will only tell you in
general terms what you can do with your pension pot: it will not
set out what you should do, given your personal circumstances. In
other words, Pension Wise only offers guidance, not advice.
That difference is key, although sometimes the distinction
between guidance and advice is not as obvious as in the case of
Pension Wise.
Guidance may be all you need if you are confident that you can
make your own financial decisions – and carry out the
necessary reviews and adjustments as personal and external
circumstances change. But are you that confident and, even if you
are, do you have the time and are you that well organised?
