Pensions Expert editor Nick Reeve opines on the new rulebook for guided retirement, with the assistance of an honorary newshound and trainee guide dog.
Anyone who has listened to our podcast, Always A Pensions Angle, will likely have heard the occasional cameo appearance made by Jenny the Trainee Guide Dog.
She’s been an honorary newshound at Pensions Expert for a year now, and will soon head to one of Guide Dogs UK’s training schools to learn her craft. With a bit of luck, and a lot of hard work, Jenny will make a huge positive impact on a visually impaired person’s life.
We were both excited this week to hear of a different kind of good guidance on the horizon, with the advent of guided retirement. (I guess it might have been the prospect of walkies, but I like to think it was pensions that got Jenny’s tail wagging.)
I don’t think we can overstate how important this legislation will be. Guided retirement, the rulebook for collective defined contribution schemes, and ‘targeted support’ in the contract-based world could all make a huge difference to people’s confidence as they approach retirement.
Adequacy of contributions also needs attention, but while we wait for the final report of the Pensions Commission to get that particular ball rolling, building a support system for the at- and post-retirement stages cannot wait.
Mentioning ‘targeted support’ also raises the continued need for cohesion across the different regulatory changes. The fact that this policy only affects FCA-regulated providers creates a big gap that needs to be addressed as quickly as practicable.
There’s also the question of how guided retirement services will interact with Value for Money (VfM). Is there a plan to integrate post-retirement offerings into the VfM rating system? I’d argue this is more important than which investment return projection to use – but some may disagree.
As with training a support animal like a guide dog, getting this right is a complex process with a lot of hard work involved and a great deal of investment needed. The ultimate reward, if all goes well, is a huge boost to someone’s quality of life. Isn’t that worth the effort?
If you’re interested in finding out more about Guide Dogs UK, making a donation, or even volunteering (they always need puppy raisers), visit the charity’s website. They’d love to hear from you.
Nick Reeve is editor at Pensions Expert.
