Guided retirement defaults risk excessive complexity for savers, IFoA research finds

Latest research favours ‘flex and fix’ and R-CDC, not drawdown

Alex Levy
clock • 2 min read
BIT research commissioned by the IFoA identified guided retirement defaults requiring active engagement in later life as likely to fail (iStock.com/NikolaMilosevic)
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BIT research commissioned by the IFoA identified guided retirement defaults requiring active engagement in later life as likely to fail (iStock.com/NikolaMilosevic)

Many of the default guided retirement solutions under consideration could be too complex for many pension savers and risk financial losses, an Institute and Faculty of Actuaries report finds.

The report – commissioned by the IFoA and produced by the Behavioural Insights Team (BIT) – suggested the rollout of guided retirement could pose much greater challenges than auto-enrolment (AE), i...

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