Investors Post Retirement Abandoned by Pensions Industry

Every effort is made to handle pension savers with care, but once they hit retirement they are on their own. Once you can exercise pensions freedom, what next?

Emma Wall 21 January, 2016 | 4:45PM
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Retirees are being “thrown to the retail wolves” – left to fend for themselves as soon as they walk out the door on the last day of work. While workers in the accumulation stage of retirement saving are treated with kid gloves, once you have access to your pension pot it is all hard sell and product pushing.

“When you are saving for retirement, all the information you receive is done with a light touch. It is gentle, low cost and takes advantage of inertia,” says Nigel Aston, head of defined contribution for State Street Global Advisors. “But once you retire you are thrown to the retail wolves. The industry is in your face, heavy handed, high charge and advice driven.”

Aston says that this approach may have suited the old guard; those retiring before April last year before pension freedoms activated, but it was not suitable for the masses.

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About Author

Emma Wall  is former Senior International Editor for Morningstar