Report: Interventions in the retirement market

The Association of British Insurers (ABI) has released a new report with a five point plan aimed at engaging consumers with their retirement options far earlier in their life.

Key findings:

• Given how consumers are behaving post pension freedoms, the ABI believes the use of targeted, more personalised communications that include a specific call to action should be used.
• Communications should commend employees for joining the pension scheme, explain the benefits of tax relief or the importance of employer contributions in growing their pension pot.
• Mid-life MOTs should be introduced to encourage people to take stock, and make realistic choices about the future. The ABI believes these should be provided by an impartial organisation but may be facilitated by providers or employers.
• In addition to these points, the ABI suggests more should be done to prompt people to use guidance; make retirement risk warnings fit for purpose; and make improvements to in-retirement communications.

These interventions have come about in response to the way in which consumers are using their pension freedoms. The recommendations are designed to transform the way people interact with their pension pots and help them to navigate their choices, with the help of a number of stakeholders, including employers.