Retirement income summit voting results

QUIZ

#retirementincome

Q. What proportion of the UK population are saving into private pension schemes?

1 2 3 4 5

40%

28%

0%

7%

25%

1. One in ten

2. One in five

3. One in three

4. Half

5. Seven in ten

Q. The Government’s recent White Paper on pension scheme transfers and small pension pots estimated that there are in excess of how

many pension pots in the UK pension system worth £2000 or less?

1 2 3 4 5

3%

9%

48%

25%

16%

1. 50,000

2. 100,000

3. 350,000

4. 650,000

5. 1 million

Q. According to Aviva’s most recent Real Retirement Report (March 2012), the median income of 65-74 year

olds is:

1 2 3

46%

18%

36%

1. £623

2. £923

3. £1,318

Q. The RDR will result in an advice gap for people with small pension pots

1 2 3

79%

13%8%

1. Yes

2. No

3. Don’t know

Q. Government should set a pension savings target to reduce the likelihood of people ending up in retirement

with small pension pots.

1 2 3

54%

11%

34%

1. Agree

2. Disagree

3. Don’t know

Q. Do you think the existing constraints on NEST should be removed now?

1 2 3

37%

20%

44%1. Agree

2. Disagree

3. Don’t know

Post RDR financial advice may be beyond the means of the average person. How can we fill the advice

gap?

Q. Regulated advice should be taken by the majority of investors at the point of retirement?

1 2 3

46%

7%

47%1. Agree

2. Disagree

3. Don’t know

Q. The Government should consider some simple defaults for annuity purchase?

1 2 3

65%

5%

29%

1. Agree

2. Disagree

3. Don’t know

Q. Consumer outcomes would be improved if simplified advice was made workable.

1 2 3

84%

10%6%

1. Agree

2. Disagree

3. Don’t know

Q. All pension accumulators should offer maturing pensions a shopping around service.

1 2 3

68%

10%

22%

1. Agree

2. Disagree

3. Don’t know

Q. Advised and non-advised annuity services should be subject to the same cost transparency requirements.

1 2 3

83%

7%10%

1. Agree

2. Disagree

3. Don’t know

Q. Government and industry should develop detailed proposals to simplify the pensions transfer process.

1 2 3

82%

6%12%

1. Agree

2. Disagree

3. Don’t know

Q. A simplified advice route for average-sized [pension] pots would strike a better balance than we currently

have.

1 2 3

74%

19%

7%

1. Agree

2. Disagree

3. Don’t know

Q. Creating default options for annuities could enable the pensions market to take advantage of technology in the

same way as the general insurance market.

1 2 3

49%

24%27%

1. Agree

2. Disagree

3. Don’t know

Good regulation protects the consumer but it must not inadvertently damage the

potential of products and services to increase pensioner income? How can we ensure that the length and complexity of communications required by legislation

does not damage communications?

Q. Strict regulation is suffocating innovation in the industry and resulting in consumer detriment.

1 2 3

42%

15%

43%1. Agree

2. Disagree

3. Don’t know

Q. All policyholders approaching retirement or asking to take their pension are given a 1 page letter that says:   Dear [Policyholder]   You have £ [40000] that you need to decide how to take as an income in retirement.   The difference between a good and bad decision could be worth around £[8000 i.e. 20% of the fund] to you over your retirement. It could be more or less depending on your personal circumstances.  

The details you need to make a decision are included with this letter. [Attach standard pack of information]

  cont …

If you are in any doubt about what to do then the Government believes you should take advice.   Advisers who specialise in helping people at retirement can be found at:  www.expertretirementhelp.co.uk or by calling free 0800 XXX XXX. All the advisers there are regulated and have been assessed as meeting a minimum standard.   Please take the time to make the right decision for you.   Yours sincerely   Your Pension Company

#retirementincome

Q. All policyholders approaching retirement or asking to take their pension are given a 1 page letter that says:

1 2 3

64%

5%

31%

1. Agree

2. Disagree

3. Don’t know

Q. The industry should agree a standard discharge form to release funds from the ceding provider to the receiving provider and this is

integrated into the annuity application form.

1 2 3

74%

17%10%

1. Agree

2. Disagree

3. Don’t know

Q. The literature provided by financial companies is compromised by regulatory requirements.

1 2 3

55%

9%

35%1. Agree

2. Disagree

3. Don’t know

Q. The birth of the Financial Conduct Authority is good for consumers.

1 2 3

27%

56%

17%

1. Agree

2. Disagree

3. Don’t know

Q. Less favourable rates for pooled annuities are a price worth paying for a more efficient market in which

underwriting puts the focus on the individual.

1 2 3

36%

24%

40%

1. Agree

2. Disagree

3. Don’t know

Q. Just as over-regulating creates costs for consumers, gold-plating the advice provided to customers whose needs are not complex  is not in the public interest.

1 2 3

81%

5%14%

1. Agree

2. Disagree

3. Don’t know

Q. Non-advised solutions combined with increased public financial education, transparent communications and appropriate ‘nudge’

techniques can help people getting better value from their pension savings.

1 2 3

85%

9%5%

1. Agree

2. Disagree

3. Don’t know

Q. Annuity providers should include medical questionnaires in all maturity packs to increase demand

for automatic underwriting in annuities.

1 2 3

56%

19%26%

1. Agree

2. Disagree

3. Don’t know

People with average sized pension pots are entitled to reasonable outcomes. How can we improve the pension’s annuity process for

the consumer and industry?

Q. Occupational schemes should follow the same principles as outlined in the ABI’s Code of Conduct on Retirement Choices,

either through a code of conduct or through TPR rules. 

1 2 3

77%

14%9%

1. Agree

2. Disagree

3. Don’t know

Q. Occupational schemes should follow the same principles as outlined in the ABI’s Code of Conduct on Retirement Choices,

either through a code of conduct or through TPR rules. 

1 2 3

88%

7%5%

1. Agree

2. Disagree

3. Don’t know

Q. Is the ‘pot follows member’ option for accumulating small pensions pots is workable in practice?

1 2 3

36% 34%

30%1. Agree

2. Disagree

3. Don’t know

Q. Should benchmark annuity rates for non-open market annuity providers should be published?

1 2 3

80%

14%7%

1. Agree

2. Disagree

3. Don’t know

Q. All annuities should be individually underwritten, taking account of health and lifestyle factors.

1 2 3

44%

9%

47%

1. Agree

2. Disagree

3. Don’t know

Q. Automatic pensions transfers should work on the principle that the pension pot follows the customer

from job to job.

1 2 3

51%

12%

37%1. Agree

2. Disagree

3. Don’t know

Q. Automatic pensions transfers should only apply to automatic enrolment pots, to ensure similar quality

standards.

1 2 3

16%

38%

46%

1. Agree

2. Disagree

3. Don’t know

Q. Automatic pensions transfers should transfer pots into a central clearing house.

1 2 3

31%

25%

44%

1. Agree

2. Disagree

3. Don’t know

Q. Industry should improve the flow of information from the current pension scheme to the member and their adviser and to release the

monies to the new provider more easily and quickly.Q. Automatic pensions transfers should transfer pots into a central

clearing house.

1 2 3

95%

2%3%

1. Agree

2. Disagree

3. Don’t know

Q. The RDR will result in an advice gap for people with small pension pots

1 2 3

69%

15%16%

1. Agree

2. Disagree

3. Don’t know