Labour wants to force DC providers to offer savers a “cooling-off period” when they access their pension pot in order to better protect against fraud.
Labour says the rules would come into action when customers approach, or are approached by, a provider on how to invest their savings.
The party says the requirement would only apply when a person attempts to withdraw more than a certain amount from their pot, although this has not been specified. The duration of the pause also remains unclear.
Cooling-off periods are already offered by some providers, although their duration varies between 14 and 30 days.
In addition, Labour has also laid out plans to work with the FCA on introducing a kite-marking scheme for both registered and authorised firms, with the aim of helping customers select reliable products.
Labour shadow work and pensions secretary Rachel Reeves says: “We fully support the new pension flexibilities which will help savers make the most of their retirement income from next week. It’s important that savers are protected from the very real threat of being ripped off by fraudsters or forced to pay excessive fees.”
She adds: “These are common sense measures that will help savers make the most of the new pension flexibilities and maximise their retirement income.”
The proposals come after Reeves proposed a cross government taskforce to tackle scams, featuring the FCA, The Pensions Regulator, HMRC, the Serious Fraud Office, and Action Fraud.
The party has also promised to introduce a cap on drawdown charges.