Defined contribution (DC) pension scheme members’ 'digital journeys' must be “vastly improved” to offer savers what they need as they approach the point of making decumulation decisions, Hymans Robertson has said.

The pensions consultancy stated that there are product design opportunities and technical solutions that providers should be utilising in their digital products to help give consumers much needed financial support.

In particular, Hymans Robertson stated that providers “must” use technology and enable savers to use a range of different products, including pension drawdown, annuity, savings vehicles and property, to meet savers' needs through retirement.

Hymans Robertson also suggested that, by implementing smarter digital journeys, providers can help individuals to better navigate the complex decision-making process of using their pensions and other assets to meet their needs and manage risks in a holistic way.

According to the consultancy, personalised digital retirement journeys would enable many members to easily engage with their retirement decisions through a non-advised channel, supplementing the advised route for those who have more complex needs and access to advice.

The call for better support follows on from Hymans Robertson’s recent report, The Decumulation Market: Opportunities for Providers, which found a “raft” of issues that pensions providers need to consider if members who are reliant on DC pensions as their main source of income are to minimise future retirement funding risks.

Hymans Robertson head of digital wealth, Paul Waters, commented: “Consumers need the right support, guidance and protection today; they cannot wait until the future.

“As an industry that is responsible for delivering good outcomes, a slow evolution in the sophistication of products and support available for individuals to manage their retirement income needs is not enough.

“There are key opportunities for providers to help individuals improve outcomes through retirement.

“Firstly, by taking a more holistic approach to retirement planning and helping individuals understand how their various assets could be used to help them achieve their retirement plans.

“Secondly, by providing guidance on sustainable income drawdown levels on an ongoing basis through an individual’s retirement, reflecting both their personal circumstances and changing market conditions.

“Finally, once pensions dashboards are fully operational, building in the ability to have all pension pots in one place allowing for easier assessment of their overall position and a smoother consolidation process.”

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