A review to help people make well-informed decisions about their pensions is to be launched next year as part of a drive to boost savers’ retirement pots.
Two industry watchdogs – the Financial Conduct Authority and the Pensions Regulator – have joined forces with a strategy to deliver better outcomes for pension savers as well as people entering retirement.
The regulators said there were “concerns that many of the UK’s future pensioners will have to live on lower incomes than they expect and for longer”, adding: “This is potentially a significant problem, with implications for millions of people and for public policy makers.”
The review in 2019 is part of a pensions action plan that sets out priorities and will see the two regulators work more closely together.
The regulators will look at how people’s understanding, engagement and trust in pensions could be improved.
People can be put off by jargon and complex terms and if people do not get to grips with their pension savings this can lead to them having little cash in retirement. Next year’s review will look at the impact of information from pension providers and advice services on savers’ decision-making.