This review is a piece of discovery work to explore how financial adviser firms deliver retirement income advice and assess the quality of outcomes consumers get.

What has prompted this work
The introduction of the Government’s pension freedom reforms has changed how consumers access their retirement savings. Given the wider range of retirement options available, it is vital that consumers get good advice at the point they first access their pension savings and, where relevant, on an ongoing basis.

Since 2015, there has been a significant shift in consumers drawing an income from pension funds that remain invested. Advice in this area can be complex, so it is important firms understand the needs of their consumers and ensure their advisory solutions deliver consistently useful advice.

Previously planned work on this topic (known as ‘Assessing Suitability Review 2’) was paused to allow resources to be concentrated on our response to Covid. This new thematic review will examine how the retirement income advice market is functioning. We will also focus on how firms are responding to changing consumer needs as a result of the rising cost of living.

We will link to the lifetime mortgage work we committed to in our 2022/23 Business Plan, to get a clearer understanding of outcomes for consumers in later life.