Speeding up transfer processes
“We want all pension savers to benefit from digital technology, modern charging structures and propositions which help people plan for retirement and give access to the new pension freedoms. Many already benefit from a digitalised transfer process, but it’s time to expand so that all providers and non-insured schemes invest in a standardised transfer process, making pension transfers simpler and easier for all. Common industry standards and processes will drive efficiencies, alongside a pension dashboard, where customers will be able to see all their pensions in one place. We believe both these initiatives have the potential to improve customer engagement and have to be the way forward.
Combatting fraud
“The introduction of pension freedoms has increased the risk of fraud for all customers, not just those reaching age 55. To combat this, we believe the solution lies in the government, regulators and the pension industry working together to establish a ‘transfer club’ where providers and non-insured schemes are vetted and agree to specified standards and processes set out in regulatory guidance. As well as mitigating the risk of pension fraud, a transfer club operating across the entire pension industry would make transfers simpler and safer for customers.
Safeguarded benefits and advice
“There has been widespread confusion about how to apply the £30,000 advice requirement, particularly when valuing safeguarded benefits and the pension industry needs urgent clarity from the government and regulator. We welcome the Pensions Minister’s recent announcement to consult on the advice requirement to end the confusion. We want to avoid prescriptive legislation and the associated complications that would bring. A simpler way forward would be to replace the advice requirement with regulatory principles for providers to point out the value of safeguarded benefits in all relevant member communications.
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