The FCA’s Targeted Support announcement and the implications for DC pensions

Commenting on the FCA’s Targeted Support announcement made today and the implications for DC pensions, Paul Waters, Head of DC Markets, Hymans Robertson, says:

“For workplace DC pensions, targeted support cannot come soon enough. And coming off the back of last week’s announcement on Guided Retirement in the Pensions Schemes Bill, it can make a significant difference to DC savers in the future. Two very obvious opportunities are helping people know how much to save, and clearer instructions when people look to take their benefits when they are older. The research published alongside this consultation highlighted that savers struggle with these decisions, especially in light of the volume of information they are often faced with. Targeted support can provide relevant steps for savers that cut through the noise. 

“The FCA’s questions around how trust-based schemes will respond to this and what they need is especially welcome. The benefits of a more uniform regulatory approach between TPR and FCA are well trailed, and the decumulation part of the puzzle for trust-based schemes is particularly troublesome. 

“The data, technology, communication, and engagement techniques needed to make this work at scale are there and ready to go. Easing the regulatory regime, as set out in this consultation, can unlock the gates to the type of support needed for those not accessing financial advice today, many of whom are workplace pension scheme members.”

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