What's the difference between pensions guidance and pensions advice?
These two similar words have distinct differences in financial services.
Guidance
An organisation providing guidance won’t make a personal recommendation. They’ll give you the facts you need and explain the choices open to you. But they’ll leave you to choose what you want to do.
Someone offering guidance:
- may take a commission from any product you buy from them.
- isn’t providing advice, so it's difficult to hold them to account if you get the wrong product.
- doesn’t have to hold professional qualifications, though many will have.
Advice
When seeking financial ‘advice’ you’ll be asked specific questions about your finances. And after a review of your situation, the adviser will recommend what action you should take.
Someone offering advice:
- must hold professional financial qualifications in the areas of advice they provide.
- is liable for the advice they give, so if it’s wrong you could seek compensation.
- can receive a commission and may charge you a fee for their service.
Free impartial advice
From 1 June 2022, pensions providers are required to refer customers to Pension Wise guidance and explain the nature and purpose of this guidance, when they decide to access their pension savings.
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About Pension Wise
Pension Wise is a government service from MoneyHelper that offers free impartial pension guidance about your defined contribution pension options
Available if you’re 50 or over, they offer telephone or face-to-face appointments with highly trained professionals.
![Pension Wise logo]()
It's important to have your free Pension Wise guidance appointment before you are ready to access your pension.
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What to expect at your appointment
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What will you get at your Pension Wise appointment?
- Guidance on how to make the best use of your pension pot (they won’t give a recommendation).
- Information about tax when taking money from your pension
- Tips on getting the best option for you, including how to compare products, get financial advice and avoid scams
Questions about taking your pension
Are there different ways to take your pension?
Do all pension providers offer the same products?
Why are you being asked if you received guidance from Pension Wise?
Why getting advice is important
Everyone's situation is different, and different companies provide different options for accessing your pension pot. It's important to get advice and guidance before you need access to your pension.
Pensions and tax
Understanding how your pension benefits will be taxed, and how inheritance tax affects pensions, is an important part of developing your retirement income plan.
Retirement planning in advance
Researching your options and getting guidance in advance of needing to access your pension can save time and may allow you to make a more informed decision based on your individual situation.
Need some help?
Making well-informed decisions about how to finance your retirement is important so it’s worth shopping around and using available guidance and advice, before you buy. Other providers may have more appropriate products or be able to offer a higher level of retirement income.
Retirement guidance
Pension Wise from MoneyHelper
The government’s free and impartial service, offering guidance to make money and pension choices clearer.
To find out more or book an appointment online click below or call.
0800 100 166
8am to 8pm, Monday to Friday.
Calls may be recorded and monitored.
Speak to us
Our colleagues in Cardiff are always happy to answer your questions or help you apply for a quote.
0800 048 2446
Monday to Friday
9am to 5pm
We may record and monitor calls.
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