The Institute for Fiscal Studies has published its latest report on pension withdrawal decisions, calling for reforms to help individuals make good use of their pension wealth throughout retirement.
In response to the findings, Rob Yuille, Head of Long-Term Savings Policy at the ABI said:
We know how confusing navigating the financial world can be for consumers, and we have long said that people need to be supported through the financial decisions they face during retirement. These decisions are complex and consequential, so it’s important that the process is as simple and smooth as possible.
Previous research we conducted on pensions withdrawals shows that guidance personalised to the consumer can improve decision making considerably. That’s why we welcome the Targeted Support framework being developed by the FCA, as this will help consumers achieve better outcomes throughout retirement by enabling firms to use data more effectively. At the same time, DWP is introducing guided retirement solutions for occupational pensions – the ‘guided’ element of this is critical, because a one-size-fits-all default won’t work for everyone.
For more information, please contact Press_Office@abi.org.uk