- The Pensions Regulator (TPR) and the Financial Conduct Authority (FCA) have today launched a joint call for input on retirement engagement (Call for Input document Pensions consumer journey FCA | The Pensions Regulator)
- The regulators are assessing the way savers interact with their pension throughout their retirement saving journey, from joining a scheme to turning their pot into an income
- Joined-up approach should help ensure any interventions are consistent across different types of pension
Tom Selby, senior analyst at AJ Bell, comments:
“Pensions have been crying out for a more joined-up approach between the two main regulators for years.
“This call for input feels like a genuine step in the right direction on that front, assessing the pension saving journey from cradle-to-grave. This approach should help ensure interventions are applied in the same way across different types of pensions.
“Furthermore, it offers an opportunity to review and hopefully simplify the communications providers are currently required to send out to savers.
“We know from various pieces of behavioural research that, when it comes to improving understanding of concepts like retirement saving, for most people less is usually more.
“The rules governing pensions communications have been built up over years and often lead to far too much paperwork being sent out to savers which, frankly, most people simple chuck straight in the bin.
“As the Government strives to introduce simple two-page annual statements and pensions dashboards development continues, now feels as good a time as any to conduct an overarching review to make sure the communications rules are fit for the 21st century.
“This in turn should help ensure more savers are armed with the information they need to make good decisions with their hard-earned retirement pot.”
