A 'streamlined' advice service sitting in between full advice and the Government's much simpler Money Guidance scheme is proposed today by the ABI.
It says the distribution of financial services needs to be reviewed to allow consumers who do not require full advice to access "something more" than the basic level offered throuh Money Guidance, which is currently being piloted.
In its Savings Manifesto, launched today, the ABI says it is currently developing a streamlined advice service to plug this gap.
According to the ABI, savings products delivered through this service would be designed to meet simple consumer needs, "with the benefits, limitations and charges of the products easily explainable to the consumer".
It adds the introduction of the service would increase consumer access and take-up, and urges the FSA and Government to support its proposals.
"ABI research this year shows that over 40% of people are either saving far too little, or nothing at all, for their retirement, while the vast majority of the UK's population has little or no protection in place to help them cope with unemployment or other unexpected financial shocks", ABI director general Stephen Haddrill says.
The ABI also advocates voluntary early auto-enrolment into pensions before the 2012 reforms so more people join employer's pension schemes for longer.
"We need a culture of personal responsibility based on savings habits established early on in people's lives," Haddrill says.
The manifesto was launched at the joint ABI/IPPR conference 'Savings, Assets and Protection in the UK: Building a more resilient society'.
It argues employers should promote increasing contributions in line with pay, and suggests pensions need to be made more attractive to encourage people to join and stay joined.
Legislation is also needed to standardise defined contribution pension schemes, says the ABI, to make pensions easier to understand, in addition to other measures to foster a "simple, stable pensions tax environment" and long-term certainty in pensions saving.
The ABI also recommends increasing flexibility of "rigid" annuitisation rules on when and how people can retire.
The publication of the manifesto coincides with release of the ABI's financial guide for consumers, a fact sheet on why people should be thinking about financial protection.
Annuity market worth £4bn in 2017
For ‘distress’ caused
Oversees £30bn of advised and D2C assets
Less than a third of top paid employees are women
£1bn business since inception