Guaranteed guidance for retirement
What consumers want
13 October 2014
22 September 2017
Policy and Public Affairs, Nick Hurman
A report summarising a comprehensive research study to gauge consumer views towards the Government's guaranteed guidance (GG) proposals for retirement.
- To contribute evidence-based thought leadership to the public debate on the development and implementation of the Government's guaranteed guidance proposals, the Chartered Insurance Institute commissioned primary research into consumer views towards this service.
- The research was with over 1,000 consumers who are the target users of the service. We defined this as within 5 years of retirement who had defined contribution (DC) pension pots and other assets each of less than £100,000 and did not have a financial adviser. The fieldwork was conducted at the end of July and beginning of August 2014.
- The research suggests strongly that these consumers would make use of the service (92% saying they would probably or definitely use it) provided that they are satisfied that those delivering it are impartial and qualified.
- Some scepticism was expressed by consumers that sufficient resources would be available to recruit and train sufficient knowledgeable staff to deliver GG before April 2015.
- Consumers want personalised communication of the offer from DWP, 6 months to two years prior to their intended retirement but would also value reinforcing messages from other parties connected with their pension - including, but not just limited to, their pension provider.
- Most consumers envisage that GG will be of value as a generic advice service - sitting outside the boundary of regulated advice - provided it is sufficiently personalised to edit their choices, navigate the information relevant to them and build their confidence to make good decisions.
- Face-to-face is the overall preference for the delivery of GG - 57% placing this first with only 6% placing telephone first. But a third (34%) place a self-completion questionnaire on-line first.
- Consumers expect to use a number of sources of information to help them decide how to use their DC pension pot - on average four. But when asked to choose their most likely follow-up action, a third say 'make their own decision through shopping around' and a quarter say they would seek professional financial advice.
This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.