The firm says it should be replaced by a clearer set of communications starting five years before retirement instead of three months. It has also called for an independent body to police providers’ communications, forcing business through the open market option in cases where it finds that communications are not up to scratch.
Independent research commissioned by the firm found consumers criticised wake-up packs for containing too much information, jargon and threatening legal disclaimers. Consumers also felt that there was not enough time to consider their decision.
Director of sales and marketing David Cooper says: “It is clear that the process is not fit for purpose. Regardless of the clarity of any communication, expecting customers to make very important decisions that close to their retirement with no previous guidance is unacceptable. We are exceptionally disappointed at the pace and nature of the industry’s progress on this matter.”
Worldwide Financial Planning IFA Nick McBreen says: “Urging people to engage earlier is absolutely right. Most retirement packs are verging on the incomprehensible so some due attention would be very useful to make these more user-friendly.”