Thoughtful debate on supporting complex pensions decisions
Credit: Mathieu Stern, Unsplash
When can I stop working and take my pension?
Should I take out my tax-free lump sum when I turn 55?
Should I buy an annuity?
We know that these are questions that people struggle with. Many are at a complete loss as to what to do for the best. That is if they even understand the question. Or if they actually engage with it. We know that, for various complex reasons both practical and emotional, many people prefer not to think about their pension until they absolutely have to.
In order to help tackle this issue, the Financial Conduct Authority has been actively consulting on some possible solutions which it describes as 'once in a generation advice changes'. One of these ideas is Targeted Support – a free service offered by financial providers to make suggestions to groups of consumers with common characteristics. It aims to bridge the gap between general information and guidance and full financial advice.
Standard Life Centre for the Future of Retirement[1] (a UK think tank with an ambition to help everyone achieve long-term financial security) came to Community Research to help bring the consumer voice into the debate – something which they had identified as being missing to date.
A rapid evidence review and interviews with stakeholders guided the approach we took. This work showed low levels of engagement amongst pensions savers, despite the considerable impacts of making sub-optimal decisions about their pensions.
We needed a research approach which overcame the challenges associated with people having low levels of awareness and understanding of the topic, in addition to actively not wanting to engage with their own pension circumstances (and potentially becoming distressed when confronted with the facts). We decided the most suitable approach would be to convene a Consumer Advisory Panel.
Panellists were recruited from Greater London and represented a range of demographics, occupations, and income levels. Most had pension savings of between £10,000 and £100,000 in one or more defined contribution (DC) schemes. Panellists went on a 3-stage deliberative journey over seven weeks, culminating in a full-day workshop in London in May 2025. The deliberative programme aimed to give panellists the time, information and opportunity to reach an informed view on Targeted Support and its potential to help pension savers navigate decumulation decision-making. Panellists were taken on a journey from thinking about their own individual circumstances to taking a society-wide perspective. In spite of what the evidence said about low engagement with the topic, our panellists remained highly engaged throughout the process and the debates about the topic were spirited and thoughtful.
The research findings were used to inform the Centre’s recommendations and have been shared with Government, the regulator, and the wider industry. The research was also used to engender lively discussion and debate at a well-attended stakeholder session in July 2025. The published findings can be found here. In addition to the research outputs, a further outcome of the approach was the beneficial impact on individual Panellists (and Community Research researchers!) in terms of elevating their financial literacy and helping them understand their own retirement circumstances much better.
[1] Previously Phoenix Insights