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Among the emerging findings of TheCityUK’s initial consultation is that the government and industry need to work together to communicate better with consumers the benefits of saving. Possible steps include the standardisation of the way savings products are illustrated, including charges. This would allow consumers to review and compare all their savings in one place or the ability to produce a combined statement using a consumer website, such as the Money Advice Service.
Speaking at the conference, Chris Cummings, CEO of TheCityUK, said: “Better communication with consumers is vital. Arguably the sole purpose of government pensions policy should be to encourage savings and to make saving rewarding. Two decades of regulatory changes have reduced consumer confidence in savings, especially pensions.
“With the current developments in the sector, including auto-enrolment, we have a unique opportunity to change the landscape for good and for the better. We need to engage in a full and frank discussion about the rules and regulations governing pensions. We then need these rules and regulations to be standardised so that they last for decades.“
“The nation has lost the appetite to save and this must be restored. Helping consumers to understand what they have saved, what this will provide in the future and the charges they are incurring will help encourage this savings culture. Government and the industry should work better together to explain the benefits of saving, while providing more certainty about the future pensions landscape. Without this certainty, consumers will remain sceptical about the long-term benefits.”
The report also considers the role of regulation across the pensions industry, and assesses whether there needs to be consolidation of either regulations governing the pensions sector or the separate regulators themselves.