Guidance guarantee: Treasury shuns providers in favour of MAS and TPAS

The plan changes an aspect of the major liberalisation of defined contribution pensions unveiled in the Budget. Critics had raised concerns a proposal to make providers give 'advice' could see unsuitable investments recommended. The guidance will now be through independent organisations, paid for by a levy on regulated financial firms. It will it not always be face-to-face, as first indicated, but could be provided online or by phone. Up until now most people in defined contribution schemes - where the final pension depends on the amount of investment returns - bought an annuity...