Ever since pension freedoms were introduced in 2015 the government has been struggling with how to get obstinate consumers to the guidance/advice fountain. Pension Wise did not work and I doubt whether the idea of a £500 tax free 'allowance' taken from your pension savings will work either. Here's why:

1. The word 'pension' has the same effect on people as watching paint dry. It's boring, tedious and generally depressing.

2. People don't like thinking about things that are inevitable eg death and taxes. Pensions involve both

3. It's too complicated and the rules change the whole time.

4. Fraud, fear and financial advice are three 'F's that make people very wary so they do nothing.

5. Endless research shows that people don't value financial advice ( although £500 is spookily close to what people would pay)

If the government really wants to encourage people to take financial advice it needs to persuade consumers that it's worth it and that the results will make people feel better about their future. All this doom gloom and despondency just turns the target they want to reach off. It makes them feel anxious, angry and helpless....and there is no guarantee that taking advice will make them feel any better!

That's not a great message!