Clear steps, confident futures: The power of guided retirement
The introduction of Pension Freedoms placed responsibility for retirement income decisions firmly on individuals. More than a decade on, recent research from the Pension Policy Institute (PPI) shows that many members reach retirement with limited confidence, fragmented pension savings and little knowledge of how to convert pension pots into a sustainable income.
The Money and Pensions Service estimates that around 22.5 million UK adults do not feel they understand pensions well enough to make informed retirement decisions, while almost half (46%) of people lack confidence in managing their money.
At the same time, many pension scheme members prioritise accessing tax-free cash ahead of considering their long-term income needs, often making decisions reactively rather than as part of a structured retirement plan.
Guided retirement moves up the agenda
The Pension Schemes Act reflects a broader policy focus on improving how members are supported at retirement, alongside growing recognition that signposting alone may not always be sufficient.
This is reinforced by research from the PPI, which highlights that well-designed guided retirement solutions can improve decumulation outcomes, provided they are simple, well-governed and introduced at the right point in the member journey. The PPI also notes that guided retirement is most effective when treated as an ongoing process, recognising that retirement decisions evolve as circumstances change.
Practical solution for trustees and employers
WEALTH at work's newly launched Retirement Guidance Service has been designed to align with this emerging framework, providing trustees and employers with a consistent, scalable and well-governed approach.
“With new legislation placing greater focus around retirement support, providing personal guidance for members at retirement is moving rapidly up the agenda for trustees and employers,” said Jonathan Watts-Lay, director at Wealth at Work.
“Our Retirement Guidance Service is designed to meet this need; providing structured, one-to-one support for members on their retirement journey, while giving schemes and employers confidence that guidance is being delivered in a consistent, well governed and compliant way.”
The Retirement Guidance Service is available to pension schemes and employers seeking to enhance retirement support. Look out for more information on this new product in REBA's upcoming new products article.
Supplied by REBA Associate Member, WEALTH at work
WEALTH at work is a leading financial wellbeing and retirement specialist - helping those in the workplace to improve their financial future.
