The Pensions and Lifetime Savings Association has launched the Retirement Quality Mark (RQM), a new kitemark fordecumulation products.
The PLSA says the RQM will build on existing guidance and act as an enabling tool to help consumers make informed decisions by identifying products that have met quality standards for governance and communications. RQM-accredited products must have independent and robust governance structures, provie value for money, permit transfer to alternative products, meet the consumers’ needs over the product’s lifetime and have clear and regular communication detailing charges, risks and actions or decisions the consumer can make.
The PLSA says 85 per cent of consumers thought it was important for a good retirement product to be independently accredited by a third party.
The new kitemark is launched through the Pensions Quality Mark.
PQM board chair Adrian Boulding says: “The RQM gives savers a clear line of sight to the quality of in-retirement products. This will help them in making the complex decisions about which retirement income products to choose, knowing that the products they’re purchasing have been independently verified to ensure they meet certain standards on governance and communications. It also supports trustees as they’ll be able to signpost scheme members to products that meet the quality standards.”
PQM executive director and PLSA chief executive Joanne Segars says; “Launching a RQM is an important step in supporting the development of a robust in-retirement market that operates in the interests of savers and also drives up the standard of the products available.
“When it comes to making a decision about how to exercise the new pension freedoms, savers are often confused and have said they want some clear guidance. We hope the RQM can offer savers the support they’re looking for.”