Helen Morrissey asks if signposting will help scheme members get better retirement outcomes.
The concept of freedom and choice has been embraced by the general public, but the reality is somewhat different.
Trustees I have spoken to have told me they are fielding many messages from scheme members who are baffled by the choices they need to make.
Of course, we know that trustees cannot veer into the realms of giving advice, but when they are being asked 'What would you do if you were me?', then it is clear that more support is needed.
Of course we know that trustees cannot veer into the realms of giving advice but when they are being asked ‘what would you do if you were me?' then it is clear that more support is needed.
And of course we have services, such as Pension wise, which do a great job. However, I think many people are intimidated and put off making an appointment.
The Pensions and Lifetime Savings Association (PLSA) believes that members can be empowered to make better retirement income decisions through signposting. This means schemes would be able to point members in the direction of particular products that meet strict quality guidelines.
The Pensions Quality Mark initiative is already working on a Retirement Quality Mark, which would do exactly this in recognising high-quality retirement products.
All we need now is the relevant regulatory clarification of exactly what trustees can and cannot do when communicating with members about their retirement choices.
The PLSA is working to raise awareness of this issue among regulators and I hope they are listened to.
Introducing signposting enables schemes to do what is right for their members while empowering them to make good retirement income choices.
More than half of BlackRock’s flagship UK defined contribution (DC) default fund’s assets will be invested in ESG strategies by June 2021.
Graeme Bold says the right communications can improve both the level of savings and the outcomes for savers.
More than half of UK savers agree they are unable to save sufficiently to achieve the retirement they want, according to research by BlackRock.
Pension savers have held off from making changes to their pensions despite nearly half having been impacted by the pandemic, research finds.