The Pensions Regulator (TPR) and Financial Conduct Authority (FCA) have today launched a call for input from the pensions industry to find out how people can be better supported when saving for retirement.
The call for input will explore the different factors affecting how consumers save throughout their working lives, and will help shape future targeted regulatory interventions.
TPR said that there has been a “seismic shift” in the pensions landscape since the launch of automatic enrolment in 2012, with 15 times as many savers in accumulation within defined contribution (DC) schemes as within defined benefit (DB) schemes.
This shift means savers carry more risk in planning for their retirement and have more decisions to make than ever before, something that was recently highlighted in the Institute and Faculty of Actuaries' Great Risk Transfer Campaign.
“The past decade has seen a pensions revolution with many more savers now putting something away for retirement,” said Richard Edes, interim director of strategy and risk at TPR. “But decisions made by savers, some that they aren’t even aware of, can have a significant impact on the kind of retirement outcomes they can expect.
“That’s why we want views on how we can improve the pensions consumer journey, putting savers at the heart of all that we do and supporting them now and in the future.”
The regulators explained how employment types and structural societal issues, including ethnicity or the gender pay gap, are just some of the factors that influence people’s engagement with their pensions.
By understanding these issues, the regulators hope to bring forward interventions which help savers make decisions about their retirement savings which are best for them in a system working as efficiently as possible.
Sheldon Mills, executive director for consumers and competition at the FCA, said: “Individual consumers now have more responsibility than ever before for making decisions about their pension savings.
“It is important our regulation keeps up with what is happening in reality. We want to hear about what is working well and where the consumer journey can be improved.”
Image credit: iStock
Author: Chris Seekings