Minister for Pensions and Financial Inclusion, Guy Opperman said:
“We are committed to ensuring that people preparing for retirement have access to the necessary support and information to make informed choices about their financial futures.
“The encouraging results from these trials will help inform our work to ensure savers are aware of the free, impartial pensions guidance available from the Money and Pensions Service.”
Carolyn Jones, Head of Pension Policy and Strategy at the Money and Pensions Service, said:
“Increasing take up of the Pension Wise service at this decisive moment in people’s financial lives is clearly a good outcome but it is only a starting point. More work should be done to explore the practicalities of making these trial approaches the standard – and then we need to build on them.
“There remains a large proportion of people accessing their retirement savings without taking guidance or advice. We need to develop a greater understanding of who these people are, and whether they face significant detriment as a result, if we are to identify the best way to support everyone’s financial wellbeing as they head into later life.”
Pantelis Solomon, Head of Financial Behaviour at the Behavioural Insights Team, said:
“The Stronger Nudge intervention improved the uptake of guidance by offering it as a normal part of the pension access journey and making it easy for pension holders to book a Pension Wise appointment. The results build on the successful implementation of the Pension Passport which also sought to apply behavioural insights to increase the uptake of guidance.
“These findings provide further evidence that simple, low-cost policies which go with the grain of human behaviour can help to improve people’s decision making.
“We hope that more interventions which apply behavioural insights will be tested to increase the take-up of guidance even further and ensure that people are getting the help they need at retirement.”
Lindsey Rix, CEO UK Savings and Retirement at Aviva, said:
“Aviva is a huge believer in the importance of financial help. We provide our own help to millions of customers, and we are big supporters of the work of the Money and Pensions Service, including Pension Wise.
“This trial has been a positive example of the private and public sector working together, for the common good. Aviva looks forward to supporting similar initiatives in the future.”
Nathan Long, Interim Head of Policy at Hargreaves Lansdown, said:
“The research shows quite clearly that nudging people to get guidance at the earliest opportunity drives far higher numbers of people to speak to Pension Wise. The beauty of this finding is the FCA has already acted to ensure providers send pension savers more reminders and from a younger age, suggesting guidance could easily become the norm for soon-to-be retirees.”
Stuart Murphy, Head of DC Client management, Legal & General Investment Management, said:
“It’s great to see validation that well-timed nudging works. As one of the largest pension providers in the UK, we always aim to provide more help and better access to information and guidance for our members and to encourage them to own their financial futures. We were delighted to support this research and we welcome any steps which help people have more knowledge, get better understanding of pensions and take clearer ownership of their finances.”