Pensions - Articles - FCA propose new interactive digital pension planning tools

As part of this, the FCA is proposing a new regime for interactive digital pension planning tools giving firms flexibility to tailor the projections in interactive digital tools to the understanding and engagement needs of their target market.

 

This would help consumers better engage with their pensions and understand the range of choices they have (such as increasing contribution rates, or retiring later), and the potential impacts of different choices on their retirement outcomes as well as factors outside of their control (such as potential growth rates) that they should take account of when planning.

 

Damon Hopkins, Head of DC Workplace Savings at leading independent financial services consultancy Broadstone, commented: “It is important that pension savers are able to forecast their retirement savings journey so that they can make long-term plans for the future and get a clear picture of what their retirement living standards are likely to be. Enabling greater innovation in this area will help firms provide better tools and communications to pension savers.

 

“It could give people the opportunity to see in real-terms how changes in their pension accumulation such as increasing contributions or working for longer could impact their retirement income. With pensions dashboards and targeted support coming on stream shortly, it will provide savers with a growing suite of digital tools to help achieve financial security.”