The introduction of the freedoms also saw the implementation of the retirement risk warnings. These were designed to act as a second line of defence for non-advised customers and those not wishing to access guidance, to remind customers to consider the implications of their decision. The warnings were also intended to clarify that providers could discuss these various issues without straying into advice.
Whilst the intention is valued, there is anecdotal evidence that the risk warnings are not fit for purpose for certain customers wishing to do certain things with their retirement income. The risk warnings can take a long time to go through, some customers feel they are not relevant, and in some cases, they are viewed as vexatious.
The industry would like to work with the FCA to see whether the risk warnings could be improved, or whether there are alternative ways of communicating the risk factors to customers.