Commenting on today’s DWP Consultation ‘Helping Savers Understand their Pension Choice’, Paul Waters, Head of Digital Wealth says:

“It is timely to see the DWP ‘Helping Savers Understand their Pension Choice’ consultation launch at a time when many are facing increasingly challenging decisions in regard to their savings. The consultation presents a significant opportunity for improvements that can deliver better outcomes for the millions of pension savers for whom financial advice may be inaccessible or impractical. We note the consultation reference that trust based pensions may need different interventions to those set out by the FCA for contract based schemes. As far as possible, a single uniform regime for communications and engagement with DC members will help understanding and decision making more than differing rules across the two types of scheme.

“Most importantly the best outcomes will not be delivered by looking at a members’ individual pension schemes in isolation, but by helping them assess and make decisions on what can be delivered from all of their pension schemes in aggregate, along with any other sources of savings or wealth they may have. Savers face a myriad of issues when considering their pensions – not least lack of accessible support, and lack of awareness of where to turn. It is important that the DWP recognises this and builds it into its planning rather than creating more prescriptive rules and guidelines. The impact on individuals beyond financial considerations, such as health, must be accounted for, and these should inform both members and trustees.”