The Financial Conduct Authority has launched a review to explore how advice firms deliver retirement income and assess the quality of outcomes consumers get.

An announcement from the regulator explains the reasons behind the work.

It said previously planned work on this topic known as ‘Assessing Suitability Review 2’ was paused to deal with Covid.

This new thematic review will examine how the retirement income advice market is functioning.

The FCA will also focus on how firms are responding to changing consumer needs as a result of the rising cost of living.

It added: “We will link to the lifetime mortgages work we committed to in our 2022/23 Business Plan, to get a clearer understanding of outcomes for consumers in later life.

“We will use the findings to help inform our future strategy for the sector. The results will also be an important indicator of how firms are implementing the Consumer Duty.”

The FCA will begin the review in Q1 2023 and aim to publish a report setting out our findings in Q4 2023.

Firms selected for the review can expect to be contacted early in 2023, when it will also engage with trade bodies.