The stronger nudge to pensions guidance coincided with a 13 per cent uptick in attendances of Pension Wise guidance sessions, data from the Money and Pensions Service analysed by Quilter has revealed.

In total, Quilter found that 105,271 appointments have been attended since the stronger nudge was implemented on 1 June 2022, compared to the 92,911 attended during the same period a year earlier, warning that the impact has been "lacklustre".

Over the same period, there was also a 21 per cent increase in appointments arranged.

However, Quilter highlighted the difference with the appointments attended as reflection of the fact that there was an increase in the proportion of no shows and cancellations, up from 25 per cent to 30 per cent.

In addition to this, Quilter argued that the increase in both bookings and attendances may not be solely driven by the stronger nudge, noting that face-to-face meetings for those customers where a telephone was not suitable were restarted in August 2022, after being paused due to Covid-19.

It also suggested that the increase in take up of Pension Wise appoints could be because more people accessed their pension for the first time in 2022/23 than in a similar period in 2021/22, arguing that the impact of the stronger nudge looks "inconclusive at best".

Indeed, Quilter suggested that the figures can be placed into further context by considering recent Financial Conduct Authority data, which showed the total number of pension plans accessed for the first time in 2021/22 was over 700,000.

Given this, Quilter argued that the proportion of individuals taking guidance when accessing their pension remains "stubbornly low" at around 16 per cent.

Quilter head of retirement policy, Jon Greer, stated: “Guidance offers a valuable resource for those looking to go it alone when they access without advice and explain the different options available, but the stronger nudge has not provided the expected boost to the take-up of guidance sessions since its implementation a year ago.

“Our experience is that many customers looking to access their pension savings already have a good idea of the action they wish to take and often do not feel they need guidance, particularly where they have already received financial advice.

"However, it is worrying that so many people who do not seek advice still appear to be opting out and going ahead without support. Taking guidance at this stage in life is a long way from becoming normalised.

“While we support the stronger nudge to pensions guidance, it is clear that something needs to change in order to ensure more people get help in making what is ultimately one of the biggest financial decisions they will ever make.

"The limited use of such a valuable resource that has been clearly signposted suggests the stronger nudge comes too late in the process.

“People’s expectations should be managed much earlier by making it clear in wake-up packs provided to those from age 50 that not only should they seek guidance or advice, but they are expected to have sought guidance or advice before they access their pension savings.

"The message should also be reinforced through Pension Wise advertising until it becomes more widely known and normalised.”

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