10 years of pension freedoms

Guiding choices, empowering outcomes in retirement

 

A decade of change

Think back to 2015; a pint of milk was 45p, “bank of mum and dad” entered the Oxford Dictionary, and 2-year variable rate mortgages were 2.80%*.

When the pensions freedoms legislation came into force in April 2015, it revolutionised retirement, placing unprecedented control in the hands of clients and fundamentally shifting how we approached retirement planning.

The intention was to give control and choice to defined contribution savers, enabling them to drive better outcomes and better meet their individual needs. But a decade of change has brought both opportunity and complexity.

The landscape has shifted

Before the pension freedoms, 90% of pension savings were used to purchase annuities. Immediately following the legislation, twice as many pots moved into drawdown than annuities and 53% of pots accessed were fully withdrawn.

More recently, we've seen the annuity market go from strength to strength. Alongside this, FCA data has revealed that advised clients are twice more likely to choose solutions that secure their long-term retirement income compared to non-advised clients.

Yet, many people are still making poor decisions. They are not accessing financial advice and are hindered by a low understanding of retirement options as well as having low trust in pensions. Paired with this, most will follow the path of least resistance and are also largely unaware of any behavioural biases they may be displaying.

Expert navigation is needed now more than ever.

Join us for our CPD qualifying webinar

Thursday, 1st May | 10:00am

Ten years ago, pension freedoms transformed how we think about retirement, putting consumers in the driving seat of their retirement savings.

At Canada Life, we recognise that advisers providing consumers with informed choices, underpinned by expert advice, is key to unlocking positive retirement outcomes. That's why we're hosting this webinar, which has been designed with you in mind.

Find out more

One in eight prospective annuity buyers unwilling to shop around despite potential income gains

New research by Canada Life has revealed that one in eight people intending to purchase an annuity would not consider switching from their existing pension provider to another supplier, even if they could potentially gain additional retirement income.

Read more

Our new whitepaper explores a decade of change

We explore the evolving landscape of retirement planning, examining the challenges and opportunities presented by the pension freedoms legislation.

We delve into the critical role of financial advice, the significance of longevity risk, and the importance of an open market option in delivering sustainable and fulfilling retirement outcomes.

The evolving role of financial advice

Financial advisers play a crucial role in helping customers navigate the complexities of the pension freedoms landscape, providing expert guidance and personalised advice. Advisers are well positioned to help customers understand their options, assess their risk tolerance, and develop a comprehensive retirement income plan that meets their individual needs and objectives. 

Pre-register now

 

From complexity to clarity: your expertise makes the difference

As an adviser, you're the key to unlocking flexible retirement plans. You translate complex information into clear, actionable strategies, ensuring your clients make informed decisions that align with their individual goals.

Our solutions are designed to support you and to meet the evolving needs of your clients at every stage of retirement. You can find out more here: 

The reality of modern retirement: Life100+ and beyond

Our Life100+ research reveals a profound shift in retirement. The "active" phase is extending, demanding longer-term planning and a greater emphasis on peace of mind and empowerment. Your clients are asking: "What can I expect?" Can you provide the answers?

Learn more about the key roles intergenerational relationships and financial advice will play as we plan for a longer later life.

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Disclaimer: 

Canada Life Limited, registered in England and Wales no. 973271. Registered office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA.
Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Stonehaven UK Limited, trading as Canada Life, registered in England and Wales no. 05487702. Registered office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA.
Stonehaven UK Limited is authorised and regulated by the Financial Conduct Authority.
Canada Life and design are trademarks of The Canada Life Assurance Company.