Britain to make lifetime retirement income the default for private pensions
Providers would have to offer a default income option, while savers could still opt out and choose drawdown, an annuity or cash.
- Pensions minister Torsten Bell announced a guided retirement consultation to establish default pension options for millions of private sector workers, simplifying how savers turn retirement savings into income.
- Private sector workers saving into defined contribution pensions bear the risk of final income levels, and concerns have risen that some people risk running down savings too fast in retirement.
- Sir Steve Webb, a former pensions minister at LCP , welcomed guided retirement but warned of a "danger" that "lifetime income" solutions could be promoted too heavily.
- The Government plans will offer pensions paying an income for the entirety of retirement, aiming to protect individuals from running pots low while ensuring they retain the freedom to choose different approaches.
- Consultations also examine retirement collective pension schemes as potential defaults, with the Government seeking views on how to design these to support members approaching retirement without destroying flexibility savers value.
23 Articles
23 Articles
Brits in Spain with old UK workplace pensions left guessing as Britain rewrites how pensions pay out
If you left a workplace pension behind in England and now live in Spain, you could one day be offered a ‘pension for life’ on it. The catch is that the plans don’t mention savers living abroad, and Spain taxes the money in its own way. Brits who left a workplace pension behind in England are included in the plans Pensions Minister Torsten Bell announced on Tuesday November 3… Source
What is guided retirement? New default UK pension plan explained
According to today's announcements by the Department for Work and Pensions, up to 17 million people working in the private sector who have been contributing towards their pension will be given the option of having an income in their...
Britain to make lifetime retirement income the default for private pensions
Britain will make a guaranteed income for life the default retirement option for private sector workers, under plans unveiled on Tuesday designed to spare millions from having to manage their pension pots on their own.
DWP unveils pension shake-up that could give 17million workers an income for life
DWP unveils pension shake-up that could give 17million workers an income for life . Millions of private sector workers could be offered a new way to stop their pension savings running out during retirement
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