Justin Corliss explains the recent FCA review of retirement outcomes.
On 28 June the FCA released the Retirement Outcomes Review (ROR) final report along with a consultation paper CP18/17, looking for feedback on the proposed changes. The consultation for investment pathways, cash defaults and actual charges information closes on 9 August 2018. For all other proposed changes the consultation closes on 6 September 2018.
The report considers the efficiency of the retirement market since the introduction of pension freedoms. While there’s a significant focus on the plight of non-advised consumers, the findings are likely to impact the advised market too. The report focuses on retirement savings in pensions, referred to throughout this article as ‘retirement savings’.
Fewer companies offer defined benefit (DB) schemes to their employees, meaning future retirees will be more reliant on defined contribution (DC) plans to provide retirement income. Auto enrolment has resulted in huge numbers of employees ‘defaulted’ into decision-free pension saving, only to be faced with an active decision at retirement. It seems many are ill-equipped to make these choices, so the report explores options to help these consumers achieve better outcomes in retirement.
Find out the results
This is a Royal London promotion.
We're the UK's largest mutual life, pensions and investment company. When we first opened our doors in 1861, we wanted to help people to help themselves. And it’s been our way of thinking ever since. As a mutual, we're owned by our customers. So you can be sure that absolutely everything we do has their long-term interests in mind.
We’re on your side
We believe the best customer outcomes are achieved through a combination of value-for-money propositions and impartial advice. That’s why we design a wide range of pension and protection solutions with advisers at the heart of our processes.
We believe in personal service, so you can expect direct contact with our experienced staff. But we also believe in great technology - through our innovative online services, you’ll have your client’s details at your fingertips. You’ll be able to access information, track progress and make live changes to their plan with us.
Why Royal London for your clients?
We like to think your clients will feel the benefit of being part of Royal London, rather than anyone else. For example, we’ll aim to give your pension clients a share of our profits each year to boost their retirement savings.
Your protection clients will also have access to our value-added benefit, Helping Hand - a package of services designed to give them the practical and emotional support they need at difficult times in their lives. All at no extra cost.