LV= is calling on the government to make it compulsory for people to take guidance at retirement when they haven’t already taken financial advice.

Following the pension freedoms, LV= believes mandating guidance would help ensure people are better supported to make the right decisions, and ultimately get more from their money.

This support needs to be wide in scope to provide guidance on all pensions related matters and all ‘retirement income’ options, not just pensions, with appropriate funding, created from an industry levy, to support this activity, LV= said, in its response to the HM Treasury public financial guidance review consultation.

Richard Rowney, managing director of life and pensions at LV=, said: “The low take up of advice is leading to a ‘mis-buying’ crisis where people are making important financial decisions without adequate support. It’s essential that all consumers are able to access affordable, regulated advice but when people can’t, or don’t, take advice we believe guidance should be compulsory. This would further inform retirees about their options and help them make the most of their money, so we fully support the introduction of a merged, one-shop money and pensions guidance body.

“Making guidance mandatory, and increasing accessibility of advice, would be beneficial to all, as not only would individuals be better off but they would be less likely to rely on State support in retirement and would contribute more to the UK economy.”