2018年-FCA英国金融行为监管局_ms16_1_3_78页_2mb

Retirement Outcomes Review Summary

Core Content

The Retirement Outcomes Review (ROR), conducted by the Financial Conduct Authority (FCA), aimed to assess the evolving pensions market in the UK following the 2015 pension freedoms. These freedoms allowed consumers greater flexibility in accessing their pension savings but also introduced more complex decisions around retirement income planning. The review focused on non-advised consumers, who do not seek regulated financial advice, as they are more vulnerable to poor outcomes.

The review identified several key issues, including:

• A significant proportion of consumers are defaulting into cash or cash-like investments, which may not be suitable for long-term retirement income.
• High charges for drawdown products, which can reduce retirement income.
• Limited product innovation and weak competition in the drawdown market.
• A lack of consumer understanding of investment options and risks.
• A trend of full withdrawal of pension pots, often driven by a lack of trust in pensions and changes in tax treatment.

The FCA proposed a package of remedies to address these issues, aiming to protect consumers, improve engagement, and promote competition. These remedies include:

• Requiring 'wake-up packs' from age 50, with a one-page summary document and risk warnings.
• Introducing three investment pathways for drawdown to help consumers make informed decisions.
• Reviewing charges for investment pathways and potentially introducing a cap if excessive charges are found.
• Encouraging independent oversight of investment pathways.
• Requiring providers to offer enhanced annuity quotes and income-driven annuity quotes.
• Providing annual information and reminders to drawdown consumers about their investment choices and the ability to switch.

The FCA also emphasized the importance of building trust in the pensions market, working with the government, The Pensions Regulator (TPR), industry stakeholders, and public guidance services like Pension Wise and the Money Advice Service (MAS).

Main Findings

• Pension freedoms have been widely welcomed, with over 1.5 million DC pension pots accessed between April 2015 and September 2017.
• Most consumers (72%) accessed their pots before the age of 65, and over half (55%) fully withdrew their funds.
• Cash investments are common among non-advised consumers, with 33% holding only cash. This may lead to income losses for those planning long-term retirement.
• Charges for drawdown vary significantly, from 0.4% to 1.6%, with non-advised consumers paying higher average charges than advised consumers.
• Competition in the drawdown market is weak, with 94% of non-advised consumers accepting the drawdown option from their current provider.
• Product innovation has been limited, but the FCA expects it to increase as DC pots grow in size.
• Full withdrawal of pension pots is often driven by a lack of trust and misunderstanding, with many pots being small and consumers not considering long-term implications.

Key Information

• Consumer engagement is expected to increase as DC pots grow.
• Non-advised consumers are more likely to make suboptimal investment choices.
• Drawdown products can have up to 44 charges, making comparison difficult.
• The FCA is consulting on proposed remedies through a Consultation Paper (CP18/17), with a Policy Statement expected in January 2019.
• A TechSprint event is planned to encourage innovation in retirement decision-making tools.
• The FCA is working with the Single Financial Guidance Body (SFGB) to improve guidance for consumers.
• The Financial Guidance and Claims Act 2018 gives the FCA the power to set rules on pensions guidance and charge structures.

Proposed Remedies

• Wake-up packs from age 50, including a one-page summary and risk warnings.
• Three investment pathways for drawdown to simplify decision-making.
• Annual communication and reminders to drawdown consumers about their investment choices and the ability to switch.
• Enhanced annuity quotes and income-driven annuity quotes for consumers considering annuities.
• Charge review and potential cap for investment pathways.
• Independent oversight of investment pathways.
• Improved guidance and support for consumers, including mandatory referrals to Pension Wise for certain groups.

Next Steps

• The FCA is consulting on remedies in CP18/17 and will publish a finalised Policy Statement in January 2019.
• The FCA will review investment pathways one year after implementation and may introduce a charge cap if needed.
• A TechSprint event will be held to foster innovation in retirement decision support.
• The FCA is working with the SFGB to ensure consistent, high-quality guidance for consumers.
• The review is part of a broader FCA strategy to support the pensions and retirement income sectors, including efforts to prevent scams and improve consumer understanding.