Pension Wise

Category: Pensions · Reviewed by Mark Fox, Broker · Renewals · Last reviewed 2026-06-10

Pension Wise is the statutory free and impartial pension guidance service available to anyone aged 50 or over with a defined contribution pension. It was introduced by the Pension Schemes Act 2015 (originally as the “Right to Free and Impartial Guidance”) to support consumers in navigating the pension freedoms introduced by the Taxation of Pensions Act 2014. The service is delivered by the Money and Pensions Service as part of the MoneyHelper brand.

Category: Pensions Also known as: Pensions guidance Statutory basis: Pension Schemes Act 2015 Related concepts: Defined contribution pension, Pension Tax Manual, Workplace pension

Definition

Pension Wise provides a one-to-one appointment (typically lasting 45–60 minutes), face-to-face, by telephone or video, with a trained guider. The session does not constitute regulated financial advice — the guider does not make recommendations — but explains the available retirement options (annuity, drawdown, UFPLS, cash lump sums), the tax implications, and the high-level pros and cons of each.

Legal / Regulatory basis

Established by the Pension Schemes Act 2015. The Pension Schemes Act 2021 introduced the “stronger nudge to pensions guidance” — pension providers must signpost or actively book a Pension Wise appointment when members approach decumulation decisions, unless the member has received regulated advice or opts out. The Financial Conduct Authority sets the corresponding conduct rules in COBS 19.7.

Scope of cover

Free Pension Wise sessions cover the four main DC retirement options, the tax treatment of each, the impact on state benefits, the protection of consumer rights, and a checklist for next steps. The service does not provide regulated personal recommendations — for those, the consumer needs an FCA-authorised financial adviser.

Practical example

A 56-year-old DC scheme member is contemplating taking a 25% tax-free lump sum and moving the balance into drawdown to fund early retirement. He books a Pension Wise appointment via MoneyHelper. The guider explains the tax implications of UFPLS vs phased drawdown, the risks of running out of money, the protection his fund has against scams, and provides a checklist. He then decides whether to take regulated advice.

See also

• Defined contribution pension
• Pension Tax Manual
• Workplace pension

References

1. Pension Schemes Act 2015 — https://www.legislation.gov.uk/ukpga/2015/8
2. Pension Schemes Act 2021 — https://www.legislation.gov.uk/ukpga/2021/1
3. Financial Conduct Authority, FCA Handbook, COBS 19.7 — https://www.handbook.fca.org.uk/handbook/COBS/19/7
4. MoneyHelper, Pension Wise — https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.

Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.