FCA Interim Report on Retirement Income Market Study – an NAPF response
The NAPF has responded to the interim findings of the FCA’s Retirement Income Market Study. The NAPF welcomes the FCA’s comprehensive analysis of the current retirement income market and consideration of the issues that arise from the changes introduced by the Freedom and Choice (F&C) agenda.
Reforms are required to the procedures for helping pension savers get the most from their pension savings; both as a consequence of current market practices in the annuity market and in response to Freedom and Choice. However, given the FCA’s lead on the new disclosure regime to be applied at retirement, the NAPF is calling on the FCA, DWP and TPR to work together closely to ensure that regulation is fit both for a future where consumer choices will be more complex and for translating to the trust-based sector. Furthermore, the FCA, together with DWP and TPR, should be clear about what constitutes a ‘good’ outcome and regulate only where it drives progress towards ‘good’. Clarity on outcomes will also help in the development of the right framing, heuristics and other behavioural techniques which we agree will be essential in helping savers as well as helping to shape good, new retirement income solutions.