Retirement Outcomes Review phase 1 - new age-based packs

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. 

What’s changing? 

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.

What will my Royal London clients receive?

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:

• Pension Portfolio Pension Plan and Self Invested Personal Pension Plans
• Individual Stakeholder Pension Plan
• Individual Executive Pension Plan
• Retirement Solutions Group Personal Pension Plan
• Retirement Solutions Company Pension Plan
• Retirement Solutions Group Stakeholder Pension Plan

Assuming your clients have a chosen retirement age of 65, they’ll receive the following communications:

• Age 50 - Age-based pack on their 50th birthday.
• Age 55 – Age-based pack 8 weeks before their 55th birthday.
• Age 60 – Age-based pack 8 weeks before their 60th birthday and a retirement engagement pack approximately 10 weeks later, on their 60th birthday.
• Ages 61 to 64 – Retirement engagement pack.
• Age 65 - Retirement engagement pack 6 months and 3 months before their 65th birthday.

Download a sample of what your clients will receive

• Age-based pack – age 50
• Age-based pack – age 55 onwards
• Retirement engagement pack

Find out more

For a reminder of what the main changes are, read our articles Retirement Outcomes Review – part 1 and Retirement Outcomes Review – part 2.