Pension providers have been notified about the changes which will mean firms have to ask consumers key questions about their circumstances before making a decision on their pension. This includes questions about their health, lifestyle choices and marital status.
From April, firms will need to give relevant risk warnings, such as advising consumers of the tax implications of their decisions, and will be expected to highlight the availability of the government’s new Pension Wise scheme and of regulated advice.
“The decisions consumers make about what to do with their pension pot are important and in some instances these choices are irreversible,” said Christopher Woolard, director of strategy and competition at the FCA. “We want to make sure that people have the help they need to make those choices.”
Providers will have to convey these messages in a direct and simple language, which will be set out when the rules are published.
