Paradise postponed – long-term impacts of the pension freedoms

Paradise postponed

After 15 significant changes to pensions in 17 years, two distinct themes emerged from our research: strategy and stability.

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paradise postponed

Our latest report ‘Paradise postponed’ (following on from ‘Freeing the Future?’) in association with the ABI shows that there is a huge amount of opportunity for the future of the long term savings and wealth market, and that innovation and personalisation will be key to success.

Battleground for innovation?

  • To be able to react to changing consumer needs and expectations there needs to be stability. Currently, businesses are only reacting to policy and this is holding back the innovation which is needed to meet the ever changing needs of the consumer.
  • Firms need to move to a more customer centric operating model with innovation and personalisation at the heart of their business strategy. Developing products and services which support the consumer during their saving life-time, provide the flexibility made possible by the freedoms ‘at retirement’ and continue to support consumers throughout their retirement will be key to success.
What next for advice?
  • On top of all this is a need to improve engagement and capability and create a guidance structure that can support consumers. This will enable the new freedoms to be successful in the longer term, moving the UK towards a lasting savings culture.
  • Innovation supported by technology could bring the game-changing solution for advice. The rise of ‘cyborg’ advice (technology delivered with human support) and ‘robo’ self-service models delivered across multiple channels will need to be able to adopt a less transactional approach and replicate the more holistic approach of the traditional IFA.
Download our Paradise postponed report to find out more about our insights into the future opportunities and challenges facing the long term savings and wealth market.

Paradise postponed report

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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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