2017年-FCA英国金融行为监管局_retirement_outcomes_review_interim_report_122页_4mb

Summary of Retirement Outcomes Review Interim Report (July 2017)

Core Content

The Retirement Outcomes Review interim report, published by the Financial Conduct Authority (FCA) in July 2017, examines the evolution of the UK retirement income market following the introduction of pension freedoms in April 2015. The review focuses on consumers who do not take regulated financial advice, and it highlights both the opportunities and challenges created by the reforms.

Main Findings

• Consumer Response to Pension Freedoms:
  Consumers have generally welcomed the pension freedoms, which allow access to pension savings from age 55 and provide a wider range of retirement income options. Over one million defined contribution (DC) pension pots have been accessed since the reforms.

• Early Access and Full Withdrawals:

  • 72% of pots accessed were by consumers under 65, most of whom took lump sums.
  • 53% of pots accessed were fully withdrawn, with 90% of these being smaller than £30,000.
  • 94% of those who fully withdrew had other retirement income sources beyond the state pension.
  • Only 25% of fully withdrawn pots were spent, with most transferred into other savings or investments.

• Drawdown vs. Annuities:

  • Drawdown has become significantly more popular than annuities, with twice as many pots moving into drawdown than annuities.
  • Annuity providers are leaving the open market, reducing choice for consumers. By July 2017, only seven providers offered annuities on the open market.

• Mistrust in Pensions:

  • Mistrust in the pension system is a major driver of full withdrawals, with consumers citing pension scandals, perception of stagnation, and uncertainty over future rules.
  • This mistrust can lead to poor financial decisions, such as paying more tax or missing out on investment growth.

• Limited Shopping Around:

  • Consumers who do not take advice tend to follow the "path of least resistance" and do not shop around for drawdown options.
  • Only 6% of drawdown sales are to new customers, compared to 94% to existing ones, suggesting limited competitive pressure.

• Product Innovation:

  • Innovation in retirement income products for the mass market has been limited.
  • There is no significant regulatory barrier to innovation, but factors such as policy uncertainty, consumer inertia, and small pot sizes are hindering it.
  • Hybrid products and simpler drawdown options have been introduced, but they are mainly for advised consumers.

• Need for Support and Protection:

  • Consumers need more guidance and support to make informed decisions about drawdown, especially as it involves managing investment and longevity risks.
  • The FCA is considering additional protections for those who buy drawdown without advice, including default investment pathways and charge caps.

Key Issues and Emerging Concerns

• Market Consolidation:

  • Annuity providers are withdrawing from the open market, potentially reducing competition and harming consumers.

• Consumer Decision-Making Complexity:

  • Drawdown is complex, and consumers face challenges in comparing products and understanding charges.
  • There is no market-wide comparison tool, making it difficult for consumers to make informed choices.

• Mistrust and Informed Decisions:

  • Mistrust in pensions is widespread, leading to poor financial choices.
  • Only 10% of consumers used the information provided by their pension provider, suggesting a need for better consumer engagement.

• Role of Financial Advice:

  • Consumers who take advice are more likely to switch providers, indicating that the lack of advice may limit competition and product quality.

Potential Remedies

The FCA is considering the following measures to address the issues identified:

1. Additional Consumer Protections for Drawdown Without Advice:

   • Introduce default investment pathways based on retirement outcomes.
   • Consider charge caps for default investment products.
   • Expand the role of Independent Governance Committees to assess value for money in decumulation products.

2. Enable Early Access Without Full Drawdown:

   • Allow consumers to access some savings early without moving the rest into a drawdown product.
   • This could reduce the need for consumers to make complex decisions early and help them retain employer contributions.

3. Simplify Comparison and Shopping Around for Drawdown:

   • Develop tools and services to help consumers compare and choose drawdown products.
   • Build on existing initiatives such as the Pension Wise guidance.

Next Steps

• The FCA plans to gather further evidence on consumer outcomes and provider practices before finalizing its recommendations.
• It will continue to monitor the annuity market and assess the need for intervention.
• The review is part of a broader effort to ensure the retirement income market is competitive, innovative, and trustworthy.
• The FCA acknowledges that some issues may require collaboration with the government, other regulators, and industry stakeholders.

Conclusion

The report emphasizes that while the pension freedoms have led to increased consumer choice and early access to savings, there are significant concerns about the complexity of drawdown, limited innovation, and the impact of mistrust on consumer behavior. The FCA is considering measures to protect consumers, promote competition, and support better decision-making in the retirement income market.