Money and Mental Health Policy Institute has called for providers to improve the design and advertisement of pensions information so it’s more inclusive for people with mental health problems - as well as providing training for staff about the additional barriers this group might face.
The institute also called for providers to take steps to improve their understanding of how to support people whose capacity may fluctuate, including developing routine checks and balances, and being proactive in encouraging customers to disclose their mental health problems.
Money and Mental Health Policy Institute interim chief executive, Conor D’Arcy, said: “As the FCA’s consumer duty comes into force in July, we’re calling on firms to take action to ensure people with mental health problems have the support and information they need to build savings and to avoid financial hardship when they reach retirement age.
“That includes reviewing the design and promotion of information around pensions to ensure it’s inclusive for those of us with mental health problems, and that it can be accessed via multiple communication channels.”
We’re calling on firms to take action to ensure people with mental health problems have the support and information they needConor D’Arcy, Money and Mental Health Policy Institute
This call for action comes after research from Money and Mental Health found that poor mental health can lead to people saving less into their pension, due to factors such as having to spend extended periods of time out of work, taking lower-paying jobs or retiring early.
These factors make it “more vital” that people with mental health problems have access to appropriate support with retirement planning - including being able to get guidance and information around pensions, to minimise the risk of financial harm in later life.
The research also found that existing services are not meeting the needs of people with mental health problems - despite recent efforts across the pensions sector to improve the accessibility of information and services.
In particular, the research highlighted problems with the design and promotion of services that are creating barriers for people with mental health needs, such as the difficulty many people have in navigating communication channels like using the phone or digital journeys.
These problems could be contributing to people with mental health problems being more likely to be ill-prepared for retirement compared to people without.
