• Pension providers could be required to offer to book retirement guidance appointments on behalf of savers under plans outlined by the FCA today (https://www.fca.org.uk/publication/consultation/cp21-11.pdf)
• FCA proposes to introduce ‘stronger nudge’ to Pension Wise at the point someone says they want to access their retirement pot
• Plans brought forward after concerns were raised too few people are using Pension Wise
• Regulator urged to consider broader guidance interventions rather than focusing just on the point people access their pension
Tom Selby, senior analyst at AJ Bell, comments: “The policy aim of getting more people to take guidance and advice about their pension is one we are 100% behind.
“For millions of people the decisions they take about their hard-earned retirement pot will have significant ramifications for decades to come, impacting not just themselves but their families too.
“These decisions can be complex and therefore need to be carefully thought through, based on a solid understanding of the implications they could have over the long-term. Guidance has a key role to play in this process.
“The stronger nudge proposal outlined by the FCA today focuses explicitly on the point at which savers indicate they want to access their pension, with an extra onus on providers to offer to book appointments on behalf of customers.
“It will be crucial in designing this process for booking appointments that there are not any unintended consequences, such as savers facing delays that they’re unwilling to accept in receiving benefits.
“More broadly, the focus of both Government and the FCA would be better placed encouraging guidance well before someone says they want to access their pension. In reality many people have already made up their mind about what they want to do at this point in time, and so will be less susceptible to such nudges.”
