Wake-up packs, savers' abilities to shop around, and looking at how to close loopholes for pension scammers will be key priorities for the Financial Conduct Authority (FCA) over the next few years, the watchdog has announced.
Setting out its business plan for 2017/18, the regulator said it would also propose a "package of remedies" to improve retirement income market competition, and review non-advised drawdown sales.
The FCA said it would publish a separate strategy for the pensions sector which may provide more concrete proposals on how to combat the issues it has identified, although no date was given.
Its future proposals are likely to be informed by its Retirement Outcomes Review, which launched last July and sought to understand the impact of Freedom and Choice on competition in the retirement income market. This included assessing how consumers choose how to access savings without using an adviser and if they were shopping around.
The FCA said it would publish an interim report on this review in the summer, while a final report will be issued at the beginning of next year.
Introducing the plan, chief executive Andrew Bailey said big problems lay ahead for pensions if these issues were not addressed.
"The social and economic implications of an ageing population, together with factors like continuing low interest rates and a rise in less secure forms of employment, are likely to have major implications for the pensions and retirement sector.
"This business plan explains our planned activities to encourage firms to address this growing need and ensure they provide consumers with the information they need to make suitable choices."
The business plan identified future risks to the pensions sector, which the regulator said primarily relate to adequacy of savings to fund a growing length of time in retirement.
In particular, it said older consumers were particularly at risk from scams, the increased digitalisation of services, and a lower than expected income from defined benefit (DB) schemes due to deficits and low returns.
However, it added younger savers were also being hit by low wage growth, higher household borrowing, reduced investment returns, and less secure employment. The FCA said there was a higher risk of income inadequacy in retirement, which could lead to younger savers adopting higher-risk products and becoming more susceptible to scams.
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