How we’re responding to the FCA Retirement Outcomes Review
In June 2016, the FCA launched their Retirement Outcome Review (ROR) to investigate how consumers and providers were responding to the pension freedoms changes. They published their final report last year and earlier this year issued a Policy Statement (CP19/21) setting out new requirements for a number of stakeholders including pensions and retirement income product providers.
The aim of these new rules is to protect consumers from poor outcomes, improve consumer engagement with retirement income decisions, and promote competition by making the costs of drawdown clearer and comparisons easier.
How we’re responding to the new requirements
We’ll be providing clients with two new documents:
- Your pension summary: information on your clients pension, including the current value and any special features. It also contains a signpost to Pension Wise.
- Your pension – key risks: key risks clients need to be aware of when thinking about accessing their pension.
Communicating to clients
From Monday 14 October we started to send the above information to Retirement Account clients around six months before their Preferred Retirement Age.
From 1 November, we’ll start to send the information to Retirement Account and some legacy pension clients when they reach age 50 and then every five years after that. We'll also send this information if the client comes to us directly and:
- asks for a retirement quote; or
- withdraws money for the first time; or
- makes any further withdrawals to exercise their Open Market Option
- asks to stop taking money from their pension and doesn’t tell us they plan to leave their money in their pension.
From age 55, providers also need to send clients the Money Advice Service (MAS) guide.
Your clients will receive their pack only once during any 12 month period.