Britain to make lifetime retirement income the default for private pensions
The consultation would create default pensions that provide lifetime income and let retirement collective schemes serve as a default option, while preserving saver choice.
- 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.
12 Articles
12 Articles
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.
Private workers to get guaranteed pension income for life in bid to close savings gap
Private sector workers are set to be given access to guaranteed pension income for life, as the government aims to close the retirement savings gap between the public and private sector. Under new plans set out by pensions minister Torsten Bell on Tuesday, providers will be required to offer workers an annual income as standard [...]
GOV.UK
headlinemoney.co.ukNew plans “resurrect” genuine pensions for millions of private sector workers
Around 17 million private sector workers now saving into a pension will be given the option of an income in retirement, closing the gap with pensions seen in the public sector, under government plans for default pensions launched today.
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