No matter what course of action the government decides to take to prevent the much talked-about ‘pensions black hole’, IFA Promotion is urging ministers to consider the cost of advising when drawing up plans.

This follows recent news that more amendments will be needed on top of the A-Day changes to improve or add to the state pension system in order to secure the future of state-sponsored retirement funds.

With more changes on the horizon, IFA Promotion’s chief executive David Elms has declared that the fees related to enlisting the help of Independent Financial Advisers (IFAs) to choose the correct pension package should be taken into account.

“Things that people don’t understand require some kind of help, no matter how simplified the system becomes,” Mr Elms said.

“There is a risk that people will make the wrong decision – either to opt in or opt out,” he continued. “Pensions aren’t bought, they are advised.”

The Pensions Commission, headed by Lord Turner, has recently been meeting to discuss how best to design and implement a National Pensions Savings System (NPSS), which could see an overhaul of the way employees and employers contribute to retirement funds.

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