UK. FCA calls for pension policy simplification
The Financial Conduct Authority (FCA) has called on pensions policy to be simplified for consumers due to the overly complex nature of defined contribution schemes.
Speaking at the Cicero event on the future of regulation, FCA executive director of strategy and competition, Christopher Woolard, said that choices that members may not understand can make a “huge difference” to their retirement outcomes.
He outlined the importance of advice for consumers in making these decisions and helping them understand the complex tax policies on top of their freedom and choice decisions.
“For many, saving for a pension used to simply mean joining a reputable employer and sitting back 40 years in a defined benefit scheme,” stated Woolard. “Today, though, most people rely on defined contribution schemes. “These pose questions about scheme strategy, fees and charges, defaults and lifestyling.
All of which can make a huge difference to the final outcome a pensioner receives.” He added that pension freedoms has caused the popularity of annuities to drop, one of the simpler ways to receive an income in retirement.
Read more @Pension Age
