Webb: Paid-for quality advice on pensions 'crucial'

Pensions minister Steve Webb has highlighted the role of IFAs in making pensions reform a success, but said he anticipated it would be difficult communicating the changes to the public.

Speaking at the opening of the Personal Finance Society (PFS) Conference in Birmingham today, Webb gave a summary of the reforms the coalition government had made, including changes to the state pension.

Although he accepted paid-for advice would not be a suitable route for many people, he did explain the important role financial advisers would continue to have in the pensions landscape.

"Lots of people are still going to want advice. An area where I'm very keen people get good quality financial advice is incentivised transfer exercises, pension increase exchanges and all of that," he said.

"Advice will be crucial. Some of it will be generic, but a lot of it will still be paid-for, high-quality advice."

During his speech, Webb also accepted the Department for Work and Pensions had historically done a poor job of communicating reform with the public, and highlighted the importance of rising to the challenge of successfully implementing auto-enrolment.

"There's a huge challenge in communication. We are dealing with many people who have never saved a pension," he said. "Nearly one in four people in auto-enrolment will be in their 20s."

Explaining how the new system would "nudge" people into saving, Webb was confident that "on balance people will choose to stay in", perhaps because some may find it "too complicated" to opt-out.

In November, an internal DWP email accidentally sent to an adviser appeared to reveal anti-adviser sentiment within the department.