As the UK’s largest long-term savings and retirement business, we have an important role to play in helping our customers on their journey to and through retirement.
One of the biggest issues facing future retirees is the gulf in the help and support available to help them make decisions about their financial future throughout their life. The ‘Guidance Gap’ affects the majority of people, with over half worrying that they won’t make their desired income in retirement. We believe more needs to be done to close this Guidance Gap to help them.
To help inform discussions around this important issue, we have sponsored 'A Guiding Hand: Improving access to pensions guidance and advice,' a vital piece of research produced by the Social Market Foundation.
The report shows:
We are using the findings of this research to help raise awareness and inform discussions, as we think it's important to work with the government, regulators, consumer groups and the advice community, to find a solution. We all have a responsibility to do our best to help people who are trying to save, and we need to take action now.
Specifically we are calling for:
1. HM Treasury and Department for Work & Pensions to establish a joint working group with all interested stakeholders (Money and Pension Service (MaPs), FCA, industry and consumer groups) to explore the complexities and find solutions to enable all consumers to get sufficient help and support so they can enjoy better financial outcomes.
As part of this, it’s important to:
2. Two initial measures to be given consideration, as this matter is urgent, and comprehensive solutions will take time:
These steps will not solve the problem but they will help.
For more information on the work we are doing to address the Guidance Gap, please contact our Media Team.