The RQM will:
• Build on current guidance and act as an enabling tool to help consumers make informed decisions.
• Signal products that had met an independent quality standard in relation to governance and communications. 85% of consumers thought it was important for a good retirement product to be independently accredited by a third party.
• Help build confidence in pensions and retirement saving.
The Board of the PQM hopes that the new Mark, part of the Pension Quality Mark family, will also help the development of a robust in-retirement market that operates in the interest of savers.
Launching the new award, Adrian Boulding, Chair of the Pensions Quality Mark Board, said: “The RQM gives savers a clear line of sight to the quality of in-retirement products. This will help them in making the complex decisions about which retirement income products to choose, knowing that the products they’re purchasing have been independently verified to ensure they meet certain standards on governance and communications. It also supports trustees as they’ll be able to signpost scheme members to products that meet the quality standards.”
Joanne Segars, PQM Executive Director and Chief Executive of the Pensions and Lifetime Savings Association, commented: “Launching a RQM is an important step in supporting the development of a robust in-retirement market that operates in the interests of savers and also drives up the standard of the products available.
“When it comes to making a decision about how to exercise the new pension freedoms, savers are often confused and have said they want some clear guidance. We hope the RQM can offer savers the support they’re looking for.”
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