Home Finance Pension ‘dippers’ snub Pension Smart service

Pension ‘dippers’ snub Pension Smart service

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Pension ‘dippers’ snub Pension Smart service

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Simply 17% of pension ‘dippers’ – savers who ‘dipped’ into their Outlined Contribution (DC) scheme to launch money – used the federal government’s Pension Smart private finance steerage service.

Regardless of a ‘stronger nudge’ by the federal government to take recommendation, fewer than one in 5 retirement savers aged 55+ who accessed a DC pension within the final 4 years consulted Pension Smart.

The figures are revealed within the FCA’s main Monetary Lives survey and have been analysed by pension specialists Simply Group.

The information reveals that regardless of publicity, solely 18% of pension savers had a Pension Smart session, up solely modestly from 15% in 2020 regardless of interventions to spice up take-up.

The figures recommend greater than 4 out of 5 pension savers don’t seek the advice of Pension Smart though it is not recognized what number of savers consulted Monetary Planners or different advisers.

The federal government has run a much-publicised marketing campaign to ‘nudge’ extra individuals to take pensions recommendation earlier than tapping a Outlined Contribution Scheme.

The figures present that solely 13% of these accessing pensions had a phone appointment with a Pension Smart specialist and 5% a face-to-face appointment.

Simply Group says the distinction could replicate a swap to phone appointments when face-to-face periods had been halted through the pandemic.

Stephen Lowe, group communications director at Simply, mentioned: “We’re nonetheless ready to see the impression of the ‘stronger nudge’ however the outcomes from the trial recommend the strategy will show to be too timid.

“The federal government retains rejecting proposals to check the impression of an computerized appointment pilot. However they and the FCA are pursuing no different significant actions to drive up Pension Smart utilization.

“They’ve given up and are out of concepts as the info from the FCA illustrates. Ought to we conclude they seem content material that pensions savers don’t mitigate the dangers they face?”




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