UK. FCA proposes Pension Wise nudge for DC savers
In a consultation today, the Financial Conduct Authority (FCA) today proposed that providers will need to go further than the current signposting in a bid to improve take-up of the free guidance service.
Consumers would see appointments made for them, if requested, although they will not be mandatory after MPs on several occasions voted against the idea, believing it could be seen as a tick-box exercise, as opposed to a beneficial part of the process.
Upon deciding, in principle, how to access their savings, defined contribution (DC) contract-based and personal pension members would be referred to Pension Wise guidance, its nature and purpose explained, and an appointment offer made automatically, and booked if then requested.
A separate consultation for trust-based schemes is also due to be launched by the Department for Work and Pensions, following a trial last year.
FCA executive director for consumers and competition Sheldon Mills said: “Pension Wise is a great service which helps people to understand their options when accessing their pension savings.
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