Pension providers will now have to offer all members a free appointment to help members to make informed decisions when taking their pension benefits. This is due to new rules that were brought into force on the 1st June by the financial conduct authority.
The ‘stronger nudge’ rule means that if a member decides to access pension savings held in a UK-based workplace or private pension, providers will be required to refer the member to the Pension Wise guidance, explain the purpose of Pension Wise and offer to book a Pension Wise appointment for the member, which offers a free and impartial government service.
The new rules were introduced following a government consultation which proved that the take-up for Pension Wise appointments significantly increased when people were ‘nudged’ to do so.
This 'nudge' will be sent to people who are over 50 and have a defined contribution pension. The rules will also apply to providers of personal, stakeholder pension schemes and self-invested personal pensions.
Our systems can support pension providers to deliver this 'nudge' to their members to ensure they are following this FCA requirement. Pension Master, along with our carefully designed portal can fulfill these requirements with the use of email merges to deliver this communication directly to each member.
If you would like to understand how our systems can support you, book in a demo with us today.