Marvin OnumonuMillions of people with defined contribution (DC) pensions are not getting the support they need to pick the right retirement products, according to research from The Pensions Regulator (TPR).
A report by the Pension Policy Institute (PPI), sponsored by TPR, found people often took full cash withdrawals or stayed in investment plans aimed at pre-retirement, which may not have been right for their needs after they stopped working.
TPR said the report should start a wider conversation about how the industry can help deliver better outcomes for savers and make sure people get good value for money after they retire.
Patrick Coyne, interim director of policy and public affairs at TPR, said: “Automatic enrolment built a nation of savers.
“Now we must move from a savings system to a pensions system, and that requires a ‘sat-nav’ for retirement which simplifies options and empowers savers to make informed choices.
“Without the right support, savers may find themselves forced to work for longer or find themselves strapped for cash when they should be enjoying older life.”
Coyne added: “Plans for a Guided Retirement duty in the Pension Schemes Bill present a fantastic opportunity for industry and policymakers to provide products and services suitable for different kinds of savers.
“We are keen to help and that is why next month we are also launching an innovation design service to get new ideas off the ground.”
