'The idea of a 'good outcome' is not as straightforward as we might think'

But the most powerful evidence I have heard comes from people with lived examples, people who tell me their stories.

One such example occurred recently during a taxi journey, where the conversation started in the usual way: 'where to?' and 'what is it you do?'.

As ever, I took the opportunity to throw in a reference to pensions, which provoked interest from this 60-something driver, as it generally does. He went on to tell me his story.

He had had several jobs in his career and driving a taxi was just a recent venture to raise some additional income. He had understood the need to save throughout his working life and had been lucky enough to work for some large, generous employers with good pension schemes.

One way or another, he had approached his 60s with a little under £200k in pension savings.

What he told me next was with a smile on his face, a smile of satisfaction and pride.

His aim in retirement was to buy a holiday home in the UK that he could use whenever he liked, for him and his family to get away, and to rent out when it was not in use.

He had known for some years that he had options to draw money flexibly from his various pensions, and this had become the basis of his plans to fund his ambition of buying a second home.

I have to say I admired his sense of focus. Few people express such clarity in their retirement plans.

He talked me through how he had sought to cash in his pensions, one-by-one, in order to raise the necessary funds. He expressed a great sense of frustration at the many questions he had to answer as he talked to various pension providers.

My immediate thought was that he may come to regret his decisions.

Questions about whether he had considered all his options, understood the tax implications, and whether he had received any formal guidance or advice. He was particularly irritated by questions about how he intended to use the proceeds.

Uninhibited by any of this, within a few months, he had successfully transferred all of his retirement savings into a bank account, and he quickly set about purchasing the holiday home he had set his eyes on.

Everything went as planned, and he now owns a property that he is renovating for him and his family to use when they wish, and to rent out when they do not need it.

He was very comfortable with how he had used his retirement savings, and very happy that he had achieved his ambition. In his view, a good outcome.

At that point, I paid my fare and the conversation finished.

Now, I do not know the precise details of his financial affairs, but I would wager he had contributed significantly to the nation’s tax receipts during this process. The marginal rate of income tax payable on encashing his pensions would have been in the tens of thousands.

Add to that the stamp duty on a second home, and perhaps more significantly, the ongoing taxes associated with its maintenance and rental income.

He had briefly referred to the amount of tax he had paid, expressing surprise and disappointment at just how much he had to give up. But again, this had not deterred him.

And he has in essence used all of his retirement savings to purchase a single, relatively illiquid asset – one that may or may not produce a steady income.

My immediate thought was that he may come to regret his decisions and that ultimately, he may come to reassess this as a poor outcome, not a good one.

It does raise an interesting question when considering the assessment of outcomes under the consumer duty; it’s more subjective than we might think and goes beyond just an arithmetic analysis of the financial elements.

I did ask him whether he had considered paying for advice at any point. He said he did look at that but decided it was too expensive. I am almost certain he will regret that one day.

Jamie Jenkins is director of policy and communications at Royal London