We are launching a discussion with industry, consumers and their representatives, in order to better understand the market for non-workplace pensions: the providers, the consumers and the relationship between them.
‘Non-workplace pensions’ is an umbrella term we are using to represent individually arranged contract-based defined contribution (DC) pensions, most commonly:
With this discussion paper, we seek to understand whether competition is working well in the market for non-workplace pensions and whether or not there is a need to go further to protect consumers.
We are asking for views and evidence about the factors that influence the behaviour of consumers and providers and whether the current market dynamics ensure fair outcomes for consumers. We will, in parallel, carry out empirical work to help us understand the issues.
You should read this paper if you represent a firm that operates contract based personal pensions, stakeholder personal pensions and self-invested personal pensions. The paper may also be of interest to other participants in related markets including providers of advice and guidance, investment platforms, asset managers and discretionary fund managers.
Consumers who have contributed to a non-workplace pension or plan to do so in the future are affected by the issues we discuss in this paper. It is likely to be of particular interest to consumers who are or once were:
We welcome input from individual consumers and groups representing their interests.
Following on from our Discussion Paper in February 2018, we intend to publish a Feedback Statement in Summer 2019 (it was not possible to complete the analysis of industry data before our Brexit moratorium). The Feedback Statement will include a summary of responses to the discussion paper as well as findings from our data collection and consumer research exercise. If the evidence demonstrates the existence of consumer harm, we will subsequently consult on proposals to remedy this.