The aim of the CfI was to establish what more can be done engage consumers so that they can make better decisions that lead to better savings outcomes. The feedback statement outlines the feedback received on the CfI; most respondents were in agreement with the stages of the customer journey and the structural issues affecting pensions, as set out in the CfI.
The feedback statement sets out the ongoing workstreams of each regulator and outlines how the regulators will use the feedback to inform future regulatory action, including an update to the regulators' joint strategy due in the second half of 2022.
The FCA intends to further explore firms' concerns around providing more support to customers and will discuss options for giving consumers greater support within the current regulatory framework. The FCA is also considering further intervention beyond its introduction of rules for a "stronger nudge to pensions guidance" (as set out in its policy statement (PS21/21)). The feedback statement takes an outcomes based approach, which aligns with the FCA's ongoing consumer duty work.
The Pensions Regulator has committed to publicising "MidLife MOT" toolkits available to employers. It also aims to encourage larger schemes and providers to support employers in this initiative. It is also working with MaPS on guidance to enable employers to support staff returning to the workforce and is promoting the existing MoneyHelper "life event" guidance around divorce and maternity leave. The Pensions Regulator also intends to conduct an equity review to understand how the market is working for different groups of savers, and review the "communicating members" section of the defined contribution guidance to provide more information on inclusivity, use of behavioural insights and timing of communication.
"In our CFI we set out to understand and identify the factors that influence the pensions consumer journey and how we as regulators, and others across the sector, can drive improvements. As respondents’ submissions show, this is a complex and broad area. Solutions to the problems identified are not straightforward, nor do they lie with one organisation."