As part of this, the regulator is looking to introduce a stronger nudge to guidance, which would see providers offer to book Pension Wise appointments for their clients looking to access defined contribution pensions.
As part of this, the FCA has asked the industry whether a nudge to Pension Wise guidance, at an earlier point in the savers’ journey, might be more effective at increasing take up, and how that might work in practice.
The FCA also pointed out that other organisations could “play an important role in delivering guidance”.
For example, pension providers may give guidance to help inform savers when accessing their individual pension pot and employers can also be a source of guidance .
The regulator stated: “They can help consumers with their workplace scheme, wider retirement planning, and other financial matters. There are limitations to this set out in law, as advice can only be provided through a regulated entity, and equally investment in FCA regulated products can only be arranged by someone with appropriate permissions.”
It added: “Only a small proportion of consumers have access to advice, and in the absence of advice, greater availability of guidance will help consumers make better choices.
“While increasing take-up of pensions guidance is important, we want to do this in an effective way that enhances consumer engagement with their pension access decision, recognising that consumers have different guidance needs.”
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