The FCA published policy statement PS19/1 at the end of January 2019, looking at how they plan to tackle some of the issues they’ve identified in the retirement market.
Phase 1 of this Retirement Outcomes Review will be introduced on 1 November 2019, with phases 2 and 3 following in 2020.
Here we look at what’s changing for phase 1 and what this means for your Royal London clients.
From 1 November 2019, all pension providers will need to send customers a new age-based pack at age 50, then every five years until they’ve accessed all their pension savings.
These packs are designed to show your clients the value of their savings and any features their pension may have that could affect the decisions they make in the future.
Although the format, timing and messaging is heavily prescribed by the FCA, we’ve used clear and simple language to help your clients understand what pension savings they have and where.
We believe that helping to engage your clients with their pension is really important in driving the right behaviours and ensuring they achieve the best outcomes.
That’s why, as well as the new-aged based packs, they’ll continue to receive a yearly update from us five years from their chosen retirement age.
Introduced nearly two years before the Retirement Outcomes Review, these yearly updates are designed to help your clients get to grips with all their options – and how they might look for them. This is very different from the new age-based packs.
You can use these communications alongside our existing tools and services to help support and enrich your client conversations.
The new packs will be sent to clients who have one of the following types of plans:
Assuming your clients have a chosen retirement age of 65, they’ll receive the following communications: