Financial Watchdog to Scrutinise Non Workplace Pension Schemes
How much do you know about your non-workplace pension? It is a question that the Financial Conduct Authority (FCA) is trying to answer and currently investigating.
The non-workplace pensions market is worth £400 million which is about double the workplace pensions market and it is growing. The FCA is concerned that non-workplace pensions lack transparency and may let down consumers. This has become especially prevalent since the introduction of pension freedoms.
If you currently have one of the following, the forthcoming report may be of special interest to you:
- Self Invested Personal Pensions (SIPPs)
- Stakeholder personal pensions (SHPs)
- Free Standing Additional Voluntary Contributions (FSAVCs)
- S32 buyouts
- Retirement annuities
- Individual personal pensions
Over the coming months the financial watchdog will review non-workplace pension schemes under the following criteria:
- Charges: This focuses on competitiveness and barriers which may prevent consumers identify and choose the best pension option
- Product complexity: This will determine if the complexity of a pension product is clearly outlined to a consumer
- Consumer behaviour: This part of the report will focus on competing demands on a consumer’s time, and how much time is needed to make an informed decision about their pension.
- Swapping products: How easy it is to swap between pensions to get the best competitive deal
- Fund choice: Here, the FCA will focus on informal defaults and assess the level of protection offered to consumers. Unlike workplace pensions, non-workplace pensions are not subject to the same protections
The FCA are currently cultivating responses to non-workplace pensions and you can give them your feedback on the issues here: FCA non-workplace discussion paper
Concerned about your Pension?
If you have concerns about your pension then I can help. You may be unsure how competitive your pension is, or have questions about its complexity. You may feel the product is underperforming and have concerns on the yield come your retirement.
If you have concerns about your pension then I can help.
I am an award winning financial planner with years of experience in pensions. Talk to me today by scheduling a call using the Call Back Service. You can do so here. Together we can determine how well your pension is performing and how to improve it.
Source: This is money