The changes in pensions legislation are complex and pensioners should always seek independent advice, two industry players have warned. The Irish Insurance Federation (IIF) has urged the setting up of minimum standards in the financial services industry to protect consumers, says a recent article in Insurance Update.

The newsletter says the opening up of the pensions market raises consumer protection issues. "It is important that the consumer is equally well protected whoever he or she is dealing with when making provision for retirement, both in terms of quality of the advice and information given, and the underlying financial strength of the provider, " says IIF life assurance manager, Ms Jennifer Hoban.

At the launch of its approved retirement funds, Scottish Provident said there would be pitfalls if pensioners did not receive the proper advice. The insurer said it was strongly committed to independent advice when it came to financial services and only distributed its products through intermediaries.