On 11 June 2025, the Financial Conduct Authority (FCA) published a new webpage setting out examples of good practice and potential areas for improvement for firms providing retirement income advice.

Background

The webpage explains that, following its thematic review of retirement income advice, the FCA wanted to provide a short ‘bite-sized’ article to help financial advisers provide good outcomes for their clients and avoid foreseeable harm. It reviewed a sample of 28 firms, through a desk-based review of firms’ advice models and governance as well as sampling advice files using the Retirement Income Advice Assessment Tool.

Findings

The findings from the FCA’s work highlighted 3 areas as fundamental to the provision of good outcomes for clients in decumulation:

• The quality of firms’ information collection and record-keeping.
• The appropriateness of client risk profiling.
• The sustainability of clients’ income withdrawals.

The FCA sets out examples of good practice and areas for improvement in relation to each of the topics listed above.

Next steps

The FCA notes that all firms involved have been given individual feedback and corrective actions were sought including the provision of potential redress where appropriate.

All firms providing retirement income advice to clients in or nearing decumulation are encouraged to read the new webpage in conjunction with the FCA’s thematic review and its article on cashflow modelling and to take any relevant action. The FCA plans to issue further ‘bite-sized’ articles on other key issues impacting the financial advice and wealth management sectors and to share these at interactive events across the country.