The FCA and pension providers must therefore change the narrative; ensuring consumers are aware of advisory fees would be a good start.
So, too, would be educating savers about the benefits of seeking advice, as it is only by understanding the value of this support that will Britons feel comfortable enough to take the next steps.
Ultimately, the FCA’s Investment Pathways is a well-meaning policy. However, in this volatile economic climate, it does not go far enough in empowering pension planners to make informed, sound decisions.
Instead, the FCA should look to improve transparency within the retirement finance domain and rebuild trust between advisers and savers. Only then will the sector be able to offer legitimate protection for people’s retirement.
Andrew Megson is executive chairman of My Pension Expert