6 April 2018 marked the three-year anniversary of the introduction of pension flexibility. Whilst the reforms are proving popular, there are some warning signs around customer behaviour that will require changes to ensure customers are suitably protected and informed about their options.
In response, the ABI is proposing a five point plan to improve consumer engagement, understanding and decision making. Each intervention has a common aim: to provide customers with short, simple information about their pension, relevant to their age and circumstances, to encourage them to use guidance and help them make decisions, and will require industry, regulators, policymakers and other relevant stakeholders – either individually or collectively – to take forward aspects of these proposals.
The industry would like to work with Government and regulators to make improvements to retirement communications, so that they are tailored and targeted, depending on a customer's age and financial circumstance.
The industry would like to work with policymakers and regulators to consider how more people could be prompted to use guidance, as a way of creating an additional safety net for consumers.
In conjunction with the FCA, the industry would like to make the risk warnings more effective so that they are relevant and helpful to both customers and providers. 
The industry would like to work with Government and the regulators to make the communications that customers receive during their retirement more effective.