A national register of IFAs willing to provide annuity advice for people with small pension pots should be created, according to the Pensions Income Choice Association (PICA).
Launching a series of recommendations today, PICA chairman Tom McPhail says more support needs to be given to help advisers serve customers with less than £50,000 in pension savings.
The newly formed association launched its flagship report this morning, titled Optimising Value in Retirement, setting out a three-stage communication process for pension providers. Effective early communication should lead to improved outcomes for consumers and a greater uptake of the open market option (OMO).
PICA is hopeful the moves will help improve incomes for retired people, but says it is vital to support IFAs as part of the process as well.
Creating a national register of advisers who can help people with pension pots of less than £50,000 would give thousands greater access to annuity advice, PICA says, and it has called on providers to help IFAs make small pension business profitable.
McPhail says process improvements and flexible commission structures would help make such business more cost-effective for advisers.
"We are determined, through our campaigning and lobbying kick-started today, to bring about actual change in the retirement income market, and importantly, to do so without financial implications to the Government or financial services businesses," he adds.
"The outcome would have a huge direct benefit to levels of income secured for retirement, and therefore retirees spending power in the wider UK economy."
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