"The way in which pension withdrawals are taxed is little short of a scandal," said Sir Steve Webb, pensions minister from 2010 to 2015 and and now director of mutual insurer Royal London.
Fintech has the potential to greatly improve people’s access to, and understanding of, pension’s data which in turn can support improved investment decision-making.
The final goal is to apply this prototype to the pension administration system and make it cost-efficient, transparent, and flexible.
The prototype was successfully delivered in March but work has continued to research consumer needs, engage with the wider industry, refine technical standards and look at how it could be appropriately regulated.
A defined benefit transfer has a time window of three months, after which the adviser will need to ask for a new quote, and might be charged for it.
The new rules require trustees to check their receiving scheme is regulated by the Financial Conduct Authority, or has an active employment link with the individual, or is an authorised master trust.