Which? response to FCA pension proposals

Gareth Shaw, Head of Money at Which?, said:

“Consumers need greater protection to ensure that they get the best advice for their pension, so the FCA’s plans – including the proposed ban on contingent charges – are encouraging.

“The introduction of investment pathways, as well as the commitment to ensuring transparency around the costs and charges for these products, will help many disengaged savers make informed decisions about their pensions and better prepare them for retirement.

“However, it is disappointing that the regulator has stopped short of introducing a cap on charges for pension drawdown products, to stop savers from sleepwalking into costly products that can drain the money they’ve worked hard to save over their careers.”