Changes to pensions are coming in 2022: Here’s what to expect, including a ‘positive development.’

0

Changes to pensions are coming in 2022: Here’s what to expect, including a ‘positive development.’

CHANGES in how Britons are informed about their pensions are hoped to keep savers in the UK better informed than ever before.

The pension and retirement landscape is constantly changing, and as 2022 begins, more changes are on the horizon.

Quilter’s head of retirement policy, Jon Greer, discussed some of the pension changes coming this year.

The big news is that regulations are changing, which means that pension providers will have to do a better job of keeping their customers informed.

“A year goes by without new pension legislation,” Mr Greer said, “and 2022 will be no different.”

“In June, providers will begin ‘nudging’ customers toward guidance services at the time they take pension benefits and on certain transfers.”

These new regulations will take effect in June 2022, and will help to ensure that savers have all of the information they require before making a pension decision.

As a result of the changes, when someone wants to access their private pension savings for the first time, their provider must:

• Recommend Pension Wise to their clients.

• Describe the nature and purpose of the advice provided by Pension Wise.

• In most cases, offer to book an appointment for their customers with Pension Wise on their behalf, or provide customers with the information they need to schedule their own appointment.

Pension Wise is a service that offers free pension advice to people over the age of 50 in the United Kingdom.

It is government-sponsored and provides 45-minute guidance sessions to anyone interested in learning more about their retirement savings.

Pension providers are only required to inform their customers about Pension Wise if they want to take money from a defined contribution pension plan.

“Any efforts to increase guidance take-up should be seen as a positive development,” Mr Greer continued, “because it’s what people ‘don’t know they don’t know’ that causes retirement pitfalls.”

“We hope to see a subsequent increase in those taking regulated advice as a side effect of increased guidance take-up.”

Along with increased guidance for consumers looking to withdraw their pension, a shift toward providing savers with more information about the long-term viability of various investment options is expected.

“Spurred on by the UN’s Brinkwire Summary News,” Mr Greer explained.

Share.

Comments are closed.