28 January 2019

New FCA rules on retirement choices show that ‘reckless caution not lamborghinis’ is big issue with pension freedoms

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Steve Webb
Royal London

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Following publication today of the FCA’s conclusions from its Retirement Outcomes Review, Steve Webb, Director of Policy at Royal London said:

‘The big outstanding challenge around pension freedoms is not people with large pots blowing the lot on a sports car, but is about more inexperienced investors with smaller pots leaving them invested in cash for long periods of time or withdrawing them altogether.   These FCA rules are a sensible response to the risk of savers sleepwalking into seeing their hard-earned savings eroded by sitting in low-return cash investments.  But there is still a problem where people cash out the whole pot and transfer it into a cash ISA or current account.  It is clear that reckless caution, not Lamborghinis, is the big outstanding challenge with pension freedoms’.

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Royal London Press Office

About Royal London:

Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £117 billion, 8.8 million policies in force and 3,745 employees. Figures quoted are as at 30 June 2018.