Majority of DC members refuse OMO

TPR investigation into pre-retirement literature of trust-based DC schemes found 23% of retirees use available options

Almost 80% of defined contribution members fail to take up retirement choices available through the open market option (OMO), a report from The Pensions Regulator reveals. The regulator’s investigation, which assessed the pre-retirement literature of 97 trust-based DC schemes, found just 23% of retirees used the OMO despite 98% of schemes offering it. The report also showed 30% of schemes had alleged legislative breaches of retirement disclosure regulations and 57% had scope for improving the standards of the retirement information they send to members. And some 6% were referred to...