Consumers in this cohort have most likely taken their initial retirement decisions and communications should focus on ensuring that these decisions are still appropriate and that they are continuing to get value for money. The FCA ’s proposals regarding a single figure for the cost of drawdown should help inform this area.
Purpose of communication
- Use simple terms to explain how investments have performed and the impact on income.
- Help consumers decide how much to withdraw.
- Remind consumers who are still invested that they still have choices they can make.
Examples of key messages
“Your pension fund is invested and can grow or shrink over the year.”
“The average consumer in your position used X% of their pension fund per year.”
“As you get older you might want to consider buying a guaranteed income for life.”