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Reports and Briefing Notes

Evolving retirement outcomes

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Since the introduction of Freedom and Choice in April 2015 people have had greater flexibility when they come to access their Defined Contribution pension savings. However, Freedom and Choice has also introduced new challenges, complexity and risk. There are concerns about people making sub-optimal decisions and potentially experiencing poorer outcomes in retirement, for example, running out of pension savings and relying solely on the State for income.

Following on from The evolving retirement landscape, which explored the way that retirement income decisions, savings and assets have evolved in recent years, this, the second report in this series, looks to the future. It explores the potential outcomes that may be achieved through different retirement income decisions, and the changes that may need to occur within the industry and wider pensions landscape in order to ensure that these outcomes are positive for as many people as possible.

Chapter one explores the risks and complexity associated with accessing retirement savings and how they might develop in the future.

Chapter two looks at the range of outcomes that people can achieve using existing products.

Chapter three discusses advice and guidance, the extent to which it is accessible, and what future innovations may improve access.

Chapter four explores product innovation, the scope for future innovation and the extent to which this may be able to improve retirement outcomes.

The evolving retirement landscape series is sponsored by AXA Investment Managers, the Association of British Insurers (ABI), the Department for Work and Pensions (DWP), Legal and General (L&G), NEST, Prudential, The Pensions Regulator (TPR) and Wealth at Work. The PPI is grateful to all of our sponsors for their support in producing this research report.