Retirement risk warnings—requirements for occupational DC schemes

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • Retirement risk warnings—requirements for occupational DC schemes
  • Development of the retirement risk warnings requirements for trust-based DC schemes
  • The legal requirements introduced on 6 April 2016
  • Duty to provide a 'retirement risk warning' with signpost to the pensions guidance
  • Timing
  • What is a retirement risk warning?
  • Exceptions
  • Methods of disclosure
  • Interaction with other disclosure requirements
  • The Pensions Regulator's expectations since April 2015
  • More...

Retirement risk warnings—requirements for occupational DC schemes

FORTHCOMING DEVELOPMENT: In a Statement of Policy Intent dated 28 October 2020, the Department for Work and Pensions (DWP) announced ‘stronger nudge’ measures to encourage people to engage with Pension Wise, a free service which provides impartial guidance for people over 50 years of age with an occupational pension.

More specifically, the DWP announced it would commence FGCA 2018, s 19 (requiring the Secretary of State to make regulations which place a duty on trustees to refer members/beneficiaries to appropriate pensions guidance when dealing with applications to access pension savings using the pension flexibilities, and to ensure the member/beneficiary has either received the guidance (or some alternative regulatory guidance) or opted out of receiving it before proceeding with an application) and introduce and consult on draft regulations implementing the duty on trustees or managers of occupational pension schemes to deliver the nudge to pension guidance. This consultation is awaited. The DWP expects that the Pensions Regulator will provide guidance for trustees and managers to support them in complying with the new duty.

On 9 July 2021 the DWP finally launched a consultation on the proposed regulations under FGCA 2018, s 19 that would require trustees and managers of occupational pension schemes to ‘nudge’ individuals who wish to access their pension to obtain guidance from

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