'Design system to avoid wasting valuable retirement guidance time'

The new retirement guidance sessions risk being a waste of time unless key information on pension funds is collected before they take place. That is the warning from Altus Consulting, which said it was crucial that the time consumers get speaking with the guidance service is not taken up with with retrieving such information.Altus estimated the average consumer would have had 11 different employers in their lifetime.Therefore, collating this information about a potentially high number of pension arrangements during a guidance session would leave little time for the delivery of actual consumer guidance.It has proposed that a simple internet based summary of customer's retirement funds is made available by providers. {desktop}{/desktop}{mobile}{/mobile} A standard form of information about members' DC pension scheme arrangements, available to consumers online, would ensure the new guidance service is as useful as it should be.This could be handed over to the new service before they meet with the retiree and could also help overcome the problem of consumers' 'lost pensions'.Jon Dean, senior consultant at Altus, said: "The Pensions Advisory Service have told us knowing about the consumer's situation really helps offer appropriate guidance but for some customers, being asked for these details will put them off taking up the offer of guidance."In many cases, people don't remember what they have got and it is part of the conversation that they have with them to find lost pensions."We believe there is a role for providers here to work together to define a simple, standard way of presenting information about their customers' pension pots."A statement showing the pot size, any guarantees and other relevant special features, would give the guidance provider and customer alike a useful summary of total benefits."Ideally there would also be a means of submitting this information to the guidance service electronically."The company has made the suggestion to the FCA as part of its response to an official consultation paper CP14-11.The FCA has recommended that the guidance provider asks consumers for a raft of information about their pension arrangements, personal circumstances and financial objectives.

'Design system to avoid wasting valuable retirement guidance time'

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