People drawing money fron their pensions “unsustainably” will be offered “targeted support” under new propposals unveiled today by the Financial Services Authority. It wants companies specialising in financial advice to be allowed to make suggestions to groups of consumers with common characteristics. Such groups could also include those not saving sufficiently for retirement and people who have excess amounts in current accounts. The changes, which have inbuilt protections for consumers, would also support growth in the UK economy by creating increased investment and innovation, the Authority argues. Its deouty chief executive Sarah Pritchard said:“We want to help consumers navigate their financial lives and plan for the long term. Some of the most difficult financial decisions we face are how to save, invest and prepare for a comfortable retirement. These once-in-a-generation reforms will help people navigate their financial lives and give them greater confidence to invest. This is a win-win for consumers and firms alike.” The Authority’s research shows only 9% of UK adults received financial advice about their pensions or investments in the previous 12 months. And nearly a quarter (24%) of those who do and have £10,000 or more in cash savings say they don’t invest because they don’t know enough about it.
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