Retirement Outcomes Review: Investment pathways and other proposed changes to our rules and guidance: PLSA response
The PLSA believes that the FCA’s proposals on investment pathways represent an important first step in improving saver outcomes in the at-retirement market. We agree with the FCA that consumers need further support and protection in the at-retirement market. The FCA’s proposed solution is aimed at savers in contract-based schemes who, having received prompts to take advice or guidance, decide to access their pensions through drawdown without taking advice. However, recent PLSA research suggests that more scheme members are opting to stay in the trust-based environment post-retirement, rather than transferring to individual personal pensions or annuities.
Over the course of 2019, the PLSA will be carrying out further work aimed at understanding the legislative and regulatory framework appropriate for trust-based DC decumulation.