Citizens Advice has been chosen as the expert provider of free face-to-face pensions guidance, following the governments announcement of new pension rules, it has emerged.
The Pensions Advisory Service will also provide free and impartial pension guidance over the telephone, Chancellor George Osborne stated at the weekend.
The rules will allow savers to take out their money from their pension pots when they reach the age of 55 and spend it as they see fit. Tax penalties will be reduced for those who withdraw their savings in a lump sum and those that leave their unused pension funds to others.
The provisions will come into force next April allowing people to take advantage of the pension freedoms.
Osborne said: 'Giving people the freedom to manage their own pension is the backbone of this government's radical pension reforms and key to our long-term economic plan.
'These organisations have years of experience dealing with a variety of consumer issues and are well placed to be accessible to everyone who reaches pension age and feels they would benefit from the guidance.'
Pension expert Ros Altmann added that most people saving for a pension do not understand 'all the vital' issues, adding that it was 'really important' that they received impartial help to make the best decisions for themselves.
Citizens Advice chief executive Gillian Guy said it was a 'natural fit' for them to have been chosen to help people understand their pension options and make choices for their future.
'The right guidance can be the key to a financially stable retirement. As a trusted, independent charity, Citizens Advice is in a unique position to deliver face to face pensions guidance.'
Michelle Cracknell, chief executive of TPAS, added: 'Our experience on the helpline is that our customers value the access to specialists and the bespoke and personalised conversations that we have with them about their retirement options.'
Commenting on the announcement, Huw Evans, deputy director general at the Association of British Insurers, said more clarity was still needed on what the guidance would actually look like and how the tax and regulatory aspects of the reforms would work in practice.
'It is now seven months since the Budget and time is beginning to run out to get this finalised. Pension providers remain committed to making the reforms work well for customers.'
