A better future for members: supporting good retirement choices
2018 Pension Freedoms Report
16 May 2018 - Estimated reading time: 10 minutes
The pension landscape has changed significantly from how it was a few years ago. With pension Freedom and Choice enabling members to access their benefits flexibly, many more are doing so. But are members getting enough support to make the right decisions in light of these freedoms?
We’ve surveyed over 100 pensions professionals to understand how we, as an industry, can do more to ensure Defined Benefit (DB) members make the right decision with their retirement options.
There are three pressing reasons why we need to support members:
- The number of members transferring out of their DB scheme has quadrupled since the Pension Freedoms were introduced in April 2015. Member engagement is at an all-time high.
- High profile scandals and scams. The industry must learn from mis-selling scandals such as the British Steel Pension Scheme, where members were picked off by unscrupulous advisers.
- Regulatory spotlight. Growing regulatory interest from the Pensions Regulator (tPR), Department for Work and Pensions (DWP) and Financial Conduct Authority (FCA) suggests change is coming. Schemes need to act now.
Clearly more needs to be done to support members with the Pension Freedoms. But, as our exclusive research suggests there is deep confusion across the industry about whose door the responsibility to provide this support falls at.
Where does the responsibility lie when it comes to supporting members with their retirement choices?
Almost half of employers and a third of trustees think the responsibility should lie with the individual. But do individuals actually have the right support available to help them understand their options and make the right choice?
In this paper we set out to answer this question and more. With all the evidence suggesting the current approach isn’t working, we seek to get a better understanding of what the key challenges are and how we, as an industry, can overcome them in order to secure better retirement outcomes for members.
Download our report below. If you have any questions please don’t hesitate to get in touch.