Julie Hammerton: The data, technology, communication, and engagement techniques needed to make this work at scale are there and ready to go
Targeted support proposals published by the Financial Conduct Authority (FCA) will make a significant difference to defined contribution (DC) savers in the future, Hymans Robertson says.
The consultancy said proposals set out by the FCA today (30 June) – which set out a new regime of targeted support to enable firms to do more to support consumers with investing and managing their pensions – "cannot come soon enough" for workplace DC pensions.
Hymans Robertson head of DC markets Paul Waters said that, for workplace DC pensions, "targeted support cannot come soon enough".
He explained: "Coming off the back of this month's announcement on guided retirement in the Pension Schemes Bill, it can make a significant difference to DC savers in the future.
"Two very obvious opportunities are helping people know how much to save, and clearer instructions when people look to take their benefits when they are older."
Waters said the research published alongside this consultation highlighted that savers struggle with these decisions, especially in light of the volume of information they are often faced with – noting that targeted support can provide relevant steps for savers that "cut through the noise".
He added the FCA's questions around how trust-based schemes will respond to this and what they need is especially welcome.
Waters said: "The benefits of a more uniform regulatory approach between The Pensions Regulator and FCA are well trailed, and the decumulation part of the puzzle for trust-based schemes is particularly troublesome."
Enhanced financial support
Hymans Robertson personal wealth head Julie Hammerton said the announcement would move us closer to a world where individuals receive enhanced financial support - a world she said "we desperately need".
Hammerton said: "We are pleased that targeted support will be established as a distinct service separate from guidance and advice."
She added: "The FCA acknowledges that there are inherent trade-offs: targeted support cannot match the precision of personalised advice. Yet this represents a pragmatic response to widespread consumer harm from lack of accessible support."
Hammerton noted: "The data, technology, communication, and engagement techniques needed to make this work at scale are there and ready to go. Easing the regulatory regime, as set out in this consultation, can unlock the gates to the type of support needed for those not accessing financial advice today, many of whom are workplace pension scheme members."
