While Parliament has chosen not to make these appointments mandatory, there is a desire to increase take up. It’s also good to see that the FCA also invites additional ideas on how to increase the take-up of Pension Wise beyond this nudge at the point of access so hopefully we will see further initiative emerge in this space.
One thing is for sure, providers and advisers alike will come under increased scrutiny to mitigate against consumer loss through poor or ill informed decisions. This represents a great opportunity for the sector to deliver even better value and service to consumers.
With the Office for National Statistics reporting that some 1million people are due to turn 55 this year, the need for advice and guidance has never been greater.
Make the complex simple
The problems around income drawdown is yet another example of how these relatively new and increasingly complex retirement options are affecting a public that still finds the topic of pensions confusing. As regulators turn their attention to what constitutes appropriate advice and customer communication, as well as the vulnerability of those consumers, pension providers, advisers and administrators all need to evidence they are acting in the consumer’s best interests.