There are particular concerns around vulnerable customers such as those with poor financial capability or who are digitally excluded.
The advice guidance boundary review that is ongoing explicitly acknowledges the more complex decisions required due to the shift towards defined contribution pensions, recognising that support for consumer decision-making is more important than ever.
Practically, closing the advice gap a meaningful amount is likely to be a multi-year project involving a host of moving parts: policy, regulation, technology, compliance and governance, to name a few.
The problem is that we need a solution soon and ideally right now. We have already lost nearly a decade, the full impact of which may not manifest itself for some time due to the long-term consequences of poor decisions.
Next year it is likely that another million or more pensions will be accessed for the first time and it is vital those savers get the support they need. Despite evidence of falling guidance take-up, there are no immediate steps being taken to boost numbers.
One option that has been suggested and received support from consumer organisations, pension schemes and parliamentarians, are auto-appointments that would set up Pension Wise appointments for savers wanting to access cash unless they choose to opt-out.
This could piggyback on the coat tails of auto-enrolment into pension saving, which has proved hugely successful by using people’s inertia to help rather than to harm. It would also reinforce taking guidance as the norm, without being mandatory. Surely it is worth a trial to see what effect it has?
Pension freedom and choice has been hugely popular but no one promised it would make anyone better off. The outcome depends on making good choices.
Whether you see yourself as an optimist, pessimist or realist, we all have a stake in helping people to better retirements.
Stephen Lowe is group communications director at retirement specialist Just Group
