The Pensions Regulator has called on trustees to consider decumulation strategies to deliver better retirement outcomes for savers.
It follows recent government research which suggests that many defined contribution pension savers may be heading towards retirement without a clear plan or enough support.
The findings showed only 22% of people who had not yet accessed their DC pension had a clear plan for how they would access it and 21% did not know they had to make a choice. Furthermore, more than half (56%) of those surveyed aged between 40 and 75 said they knew there was a choice but did not have a clear plan.
Patrick Coyne, interim director of pensions reform at The Pensions Regulator, warned that generic solutions that resort to basic signposting to products will no longer be enough to help savers turn pension pots into lasting retirement income.
“We’ve done the hard work of getting people saving. Now we must make sure it’s worth it. Trustees must see themselves not just as stewards of assets but as enablers of good retirement outcomes,” he said.
Coyne has called for trustees to bring forward plans for simple but tailored support, smarter decumulation strategies and clearer guidance.
