Decumulation Pathways

The Working Party was established in July 2020. Its purpose is to consider how individuals’ defined contribution (DC) pension pots can be automatically shielded from poor decision making due to a lack of financial awareness and understanding of pensions. The working party is to share knowledge among members and to help the IFoA develop its policy.

A decumulation pathway means a standardised strategy for managing decumulation for most or all of its duration, which can be offered by a provider and that is suitable in certain specified circumstances. Creation of a series of such pathways, that are suited in varying circumstances, might provide the framework for helping people to avoid making bad decisions regarding decumulation.

Deciding on a suitable range of decumulation pathways, their design and how to allocate consumers to the most appropriate ones are key areas to be explored.

Outputs

TBC