The Association of Consulting Actuaries (ACA) is calling for clearer guidance to help trust-based pension schemes make the most of targeted support.
In its response to the FCA’s Advice Guidance Boundary Review, the ACA says schemes need more clarity—even if that means referring the issue to the DWP and the Pensions Regulator.
The ACA says targeted support must include both personal recommendations and general advice. If the framework is too cautious, it risks losing its value. It also warns that the current Pensions Advice Allowance isn’t enough, as many people will still need personalised financial help.
Rather than defining a ‘better’ retirement outcome, the ACA suggests avoiding ‘poor outcomes’, such as inefficient tax decisions or misaligned investments. It supports simple, ready-made targeted support solutions and a process to ensure individuals are matched with the right guidance.
ACA DC committee chair Tess Page says: “We welcome the consultation, and ACA strongly supports creating a framework that will enable more people to access advice or support, at an affordable price.
“While there are inevitable risks associated with the proposals, these can be mitigated and monitored over time and should not prevent moving forward with a view to democratising access to support to individuals.
“We would like clarity regarding how trust-based schemes will be able to confidently make the most of targeted support, even if this is to refer further consideration of this matter to the DWP and the Pensions Regulator. There is no reason why a provider of targeted support should not obtain information about a member in a trust-based scheme and about the scheme itself.
“However, consideration needs to be given as to how this would work in practice, especially where there is no existing link between the trust-based scheme and the provider and bearing in mind that targeted support will require ongoing assessment of whether it is producing good outcomes. Consideration will need to be given to introducing a framework that provides trustees with the necessary comfort that allows them to provide targeted support, or something equivalent.”
