Commenting on the PLSA’s DC Decumulation: Call for Evidence, Emma Clare, Senior Consultant, Hymans Robertson, says:

“We in the pensions industry are generally good at helping members get to the point of retirement. In spite of this, most DC members end up using the default investment strategy, default contribution rates and default retirement age. Despite our best efforts to date, many are wholly disengaged with their pension.

To expect these same people to make informed decisions at the point of retirement, without significant help and support - both initially and on an ongoing basis - is a vain hope. Analysis from longevity analytics provider Club Vita shows that there can be over 10 years difference in life expectancy for a 65 year old retiring male, based on aspects such as their lifestyle, postcode and health. Men generally underestimate their life expectancy by around 5 years and women by around 8 years. On that basis, giving retirees guidance and advice on life expectancy, and well as investment and tax, will be vital in getting them to choose the right retirement option.”