“With Labour pledging to review pension policy, it may want to factor in the outcomes of the stronger nudge to guidance and whether it is effective, should it win the general election.
“While we continue to support the intention of the stronger nudge, the approach must be adapted to ensure more people are well informed and supported through what is one of the most significant financial decisions they will make in their lifetime.
“At present, the stronger nudge simply comes late in the process. A solution would be to help manage expectations by making it clear in pension wake-up packs that not only should people seek guidance or advice, but that it is expected prior to them accessing their pension savings.
“However, normalising seeking guidance is not something that can be achieved solely by nudging customers to pension guidance at the point of taking benefits. It will take a concerted effort to bring it into the mainstream by being highlighted by trusted consumer champions and supported by ongoing marketing efforts,” Greer added.
alina.khan@ft.com
