PS19/21: Retirement Outcomes Review: feedback on CP19/5 and our final rules and guidance

Consultation: CP19/5
Consultation closed
Policy Statement 19/21

This Policy Statement summarises the feedback received to our second consultation on remedies from the Retirement Outcomes Review (ROR). It sets out our final rules on investment pathways and the other remedies in CP19/5.

Read PS19/21 (PDF)

Why we are changing our rules

We are introducing new requirements primarily to help non-advised drawdown consumers who struggle to make investment decisions. We also intend these requirements to promote competition by making the actual charges paid by consumers clearer, and comparisons easier.

Our new rules and guidance:

  • introduce ‘investment pathways’ for consumers entering drawdown without taking advice
  • ensure that consumers entering drawdown only invest mainly in cash if they take an active decision to do so
  • require firms to send annual information on all the costs and charges paid over the previous year to consumers who have accessed their pension


The 2015 pension freedoms give consumers more complicated choices to make about how to invest their pension savings, and when to draw on them. In 2016, we launched ROR to investigate how consumers and providers were responding to the pension freedoms.

Our ROR Final Report (June 2018) set out our findings and our proposed package of remedies, which we have consulted on in 2 stages.

We published our final rules and guidance on the first stage in PS19/1 (January 2019).  This covered ‘wake-up’ packs, information for consumers about annuities, and changes to make the cost of drawdown products clearer and more comparable for consumers.

This Policy Statement (PS19/21) sets out our final rules and guidance on the second stage.

Who this applies to

This Policy Statement will be of interest to firms providing income drawdown. It will also be relevant to stakeholders with an interest in pensions and retirement issues, including:

  • individuals and firms providing advice and information in this area
  • distributors of pensions and retirement income products
  • asset management firms
  • trade bodies representing financial services firms
  • consumer representative groups
  • charities and other organisations with a particular interest in the ageing population and financial services
  • consumers of pensions and retirement income products

What you need to do

Firms should note the Handbook changes in the PS and adapt their practices accordingly.

The new rules and guidance set out in this Policy Statement will come into force on 1 August 2020.