Commenting on the Stronger Nudge to Pensions Guidance Consultation, Michael Ambery, Partner says:

“We fully support any assistance that can help members with decision making as they approach retirement. So this consultation’s aim to understand whether nudging individuals in their decision making will improve these decisions is very welcome. Providing the right and most appropriate advice, in a way that will help individuals make the best decisions for their own circumstances, is critical as they access or transfer their pension. It is imperative that nudges, guidance and signposting continue right up to the point of retirement as support is both timely and critical, and the repercussions of poor decisions can be significant.

“Consumers are currently bombarded by a deluge of options as they approach retirement and find it difficult to make decisions. This can lead to individuals retiring at a different date to the one which they had planned, and can lead to default to encashment. It can also result in them being in a post-retirement investment or solution that does not provide value or meet their individual needs, or those of their dependents. We believe signposting would improve outcomes, provide education and awareness, and prevent a generation from defaulting to detrimental decisions.”