Pensions - Articles - Comment on FCA's consultation on Retirement Income

 "Last year's 'pension freedom' reforms were always going to have a profound impact on people's behaviour. Most of the data produced in these early days has been on an ad hoc basis and lacks the deep insight needed to really understand what people are doing and what the consequences are likely to be. The Government has said that there is no evidence that people are acting irresponsibly but we don't have much evidence they are being careful or considered either. We need a great deal more insight, in particular into how individuals are using their wealth in aggregate rather than just on a pot by pot basis. Cashing in a modest pension pot to spend may be the most logical or the most irresponsible thing someone does, depending on what other assets and income they have.

 "People are being asked to shoulder a great deal more responsibility and many are assuming a great deal more risk too. It's likely there will be winners and losers from the reforms. It's important we put in place an effective early warning system that flags up where problems might be occurring to allow legislators and regulators to take action sooner rather than later."