Commenting on today’s DWP consultation outcome, Stronger Nudge to Pensions Guidance, Michael Ambery, Partner says:

“Any support to ensure consumers make the right pensions decisions and remain fully aware of the support that is available is welcome. We are pleased to see the consultation announcement but hope, that once implemented, it doesn’t become a tick box exercise in which consumers simply opt out of receiving guidance. It will be vital that employers, trustees and the industry look at the Guidance that is available and work together to increase both engagement and awareness. They must take responsibility for highlighting the importance of life-changing financial decisions at all stages of the pension and savings journey.

“Consumers are currently bombarded by a deluge of options as they approach retirement and find it difficult to make decisions. This can lead to individuals retiring at a different date to the one which they had planned, and can lead to default to encashment. It can also result in them being in a post-retirement investment or solution that does not provide value or meet their individual needs, or those of their dependents. By the pensions industry committing to improving signposting, in the wake of this consultation, it would improve outcomes, provide education and awareness, and prevent a generation from defaulting to detrimental decisions.”