Meeting consumer needs at retirement in a changing financial environment

Last week the FCA published its Sector Views 2020, which analysed the financial industry’s performance – and how a changing financial environment may impact consumers’ lives. 

Within the pension savings and retirement income sector, some interesting issues and trends were explored. These include problems with products deemed unsuitable for customers, which links to the FCA’s proposal to introduce investment pathways to support non-advised consumers’ drawdown choices. There is insight into how firms are targeting opportunities in the at-retirement market, and analysis of consumer behaviour towards choosing annuities. 

We’re living longer, which means consumers must make pensions last longer than ever before. In recent years we’ve seen societal shifts and sweeping economic uncertainty. Because of this, making informed financial decisions that address our current and future needs has become incredibly difficult. 

With that in mind I welcome the FCA’s acknowledgment that, for many consumers, achieving a retirement income that meets their needs or expectations remains a central challenge. We need to help consumers make better and more informed decisions before, at, and in retirement. People are no longer restricted to a rigid retirement income option, and now have a range of innovative products to choose from. 

But neither is there a ‘one size fits all’ retirement.

Modern retirement is a fluid, flexible concept. Our aim at Legal and General is to help customers lead happier, healthier and more independent lives through the broadest range of retirement income, retirement lending, financial advice and care solutions. 

We believe that every person should have a more colourful retirement that works for them, which can be achieved using a tailored blend of products. 

Read the full FCA report here