The Pensions Regulator (TPR) has encouraged pension schemes to offer their members a midlife MoT, following the launch of the Department and Pensions’ (DWP) enhanced digital offering of the resource.
In a blog post, TPR’s director of regulatory policy, analysis and advice, Louise Davey, called on schemes to signpost midlife MoTs to members, particularly those aged between 45 and 65.
Furthermore, Davey suggested that pension schemes fully integrate the resource into the support they already offer to their members.
Earlier this month, the DWP launched a newly enhanced digital midlife MoT, which brings together services, tools and charity resources from the NHS, Money Helper, Mind, Citizens Advice and the DWP.
It aims to help pension savers review their transferable skills and search for a more appropriate job, think about how they can better manage their health to stay in work, and restructure their household budgets to achieve their financial goals and plan for later life and retirement.
Davey noted that the nature of work and retirement was changing, with people living longer, working more jobs, and approaching retirement differently.
She explained that upfront planning on how people want to spend their later life made an enormous difference to what is on offer, with the money section of the enhanced midlife MoT enabling people to educate themselves on pension basics, check their state pension age, find any lost pension pots, establish their ideal retirement income, and go through a guide to boosting their pension and planning their retirement income.
“The launch of the new digital resource comes when the spotlight is being thrown on how schemes should support savers when they access their defined contribution pensions,” Davey wrote.
“All pension savers deserve value for their money, and that means being supported into high-quality decumulation products and services that are right for their personal circumstances.
“In our joint review of the pensions consumer journey with the Financial Conduct Authority we set out our support for the midlife MoT because we know that pensions cannot be seen in isolation. Levels of saving and debt, day-to-day household finances, how long people plan, need or want to work, all need to be factored in as we live longer.
“That planning should start sooner rather than later. Taking the midlife MoT should be seen as an essential part of the pensions journey.”
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