Support in pensions decision-making

Credit: Mathieu Stern, Unsplash

Much as we don’t want to think about it, most of us will not have the straightforward and financially secure pension arrangements our parents and grandparents enjoyed. Unlike former generations, we face greater pensions uncertainty and a plethora of complex and high-stakes decisions as we approach retirement age. In spite of this, few of us seek financial advice.

Phoenix Insights – a think tank focusing on later life – wants us to help them explore the consumer perspective in relation to proposals from the FCA and HM Treasury, which include a new form of support known as ‘Targeted Support’. Our main focus is to understand how Targeted Support could help people facing retirement decisions, and to date the consumer voice has been largely missing from this debate.

There are some complicated and nuanced trade-offs at play – concerning consumer protection; choice and agency; and competition. It is vital that consumers can explore and voice their views on these trade-offs and consider the role of Targeted Support in supporting consumers in their decision-making at and during retirement. They need an opportunity to learn about what is at stake so they can be actively involved in the debate.

We have just finished an initial scoping phase, which involved a focused review of the existing evidence and 12 interviews with people representing the industry, consumer interest, behavioural science and public policy thinking on these issues. You can read our our report on this phase here.

Our challenge is to help members of the public reach informed decisions about what they want, what is needed by the public as a whole, and how it should be delivered effectively. The aim of the first scoping phase has been to inform the design of the research with members of the public – who to focus in on, how to present this highly complex information, and what to ask them.

We are currently designing a deliberative citizens panel, which will involve 20-30 people and run over the course of 6 months. This iterative research programme will include an online forum, in-person workshops and individual activities. Informed by the insights from the initial phase (and particularly the behavioural science on decision-making), we aim to get under the skin of how people feel about making pensions decisions, and what will help. We will be gradually building up panellists’ knowledge and confidence on the issue, before asking them to reach an informed view on the Targeted Support concept, considering how this might work for them, and for society at large.