I beg to move, That the clause be read a Second time.

This new clause builds on new clause 2, tabled by the hon. Member for Bootle, and it makes specific reference to advice to be given on automatic enrolment and workplace saving. Many people are in the dark about what they can expect from the state and their employers when they retire. The complexities in the system and in products and the lack of independent advice are not only confusing but may lead to a lack of uptake on saving.

In March 2016, Citizens Advice, which delivers the face-to-face channel of Pension Wise, found that some of the most used pension terms were confusing for customers. It said that people would find it easier to understand their pensions if the industry used simple, standard language to describe its products. It says that some people are also unclear about terms that appear to be more straightforward, which puts them at risk of missing out on the best pension options for them.

In July, the Bank of England’s chief economist, Andy Haldane, admitted that pensions had become so complex that even he could not make the remotest sense of them:

“I consider myself moderately financially literate—yet I confess to not being able to make the remotest sense of pensions. Conversations with countless experts and independent financial advisers have confirmed for me only one thing—that they have no clue either. That is a desperately poor basis for sound financial planning.”

Giving customers access to advice will allow them to weigh up their options and decide where they can save the most for their retirement. Figures from the Association of British Insurers that expose the fact that investors will lose thousands of pounds by saving into a lifetime ISA rather than a workplace pension support the need for savers to be aware of their options and of how much they will get in return.

True Potential LLP supports calls for financial education. The Tackling the Savings Gap campaign places financial education alongside technology and regulation as one of the three core requirements needed to close the gap. The amendment is important because it would put in place the necessary steps for providing advice that would ensure that savers, and those who should be investing in pensions, do not end up in the wrong place.