The pension flexibilities introduced in April 2015 offered savers the ability to access their pension savings early, once they were over the age of 55, as best suited their needs. These changes meant that consumers had a wider range of options to consider once they reached retirement.

To support savers with high quality, affordable financial advice, therefore, the Government announced during the 2016 Budget that it would open a consultation on introducing a Pensions Advice Allowance. This would allow consumers to take £500 tax free from their defined contribution pension to redeem against the cost of financial advice.

This consultations set out the Government’s preferred design for this allowance, inviting comments on the design and outstanding policy questions.