The Financial Conduct Authority’s new rules guiding customers to use Pension Wise before drawing down their pension, which came into force on June 1, have been criticised as “poorly timed and mismanaged” by one provider.

Trustees and providers are now required to offer customers aged 55 and above, who are accessing their funds for the first time, an appointment with Pension Wise. The service offers free 45-minute sessions on savers’ retirement options.

The FCA said that this “nudge” can be delivered when the customer applies for a retirement income.

James Jones-Tinsley, a self-invested pensions technical specialist at Barnett Waddingham, said that the initiative was positive at face value.

He added, however, that the idea was badly timed and had been mismanaged. “To date, only one in 33 of those eligible have taken the appointment,” he said.

“If the timing of the nudge was moved earlier, before people have already made a decision and need their money to be readily available, the value of the appointment would increase exponentially.”

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, agreed that the nudge would be more effective if delivered earlier.

She noted that behavioural trials with the Money and Pensions Service revealed that the earlier the nudge was introduced to the process, the more likely a customer would attend an appointment.

“How and when this nudge is delivered is all important in helping people get good outcomes,” she said.

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