The Pensions and Lifetime Savings Association (PLSA) comments on pensions minister Guy Opperman’s comments to the Work and Pensions Select Committee that he plans to open a call for evidence into the choices facing savers in trust-based workplace pensions when they access their savings.
Nigel Peaple, Director of Policy and Advocacy, PLSA, said: “It is a really positive step that the Minister for Pensions has signalled his intention to launch a call for evidence to examine how savers in trust-based occupational pensions can get more information and guidance when deciding how to access their pension when they retire.
“Pension freedoms have given people new possibilities to choose how to draw their pension savings. However, a bridge is needed between a system that uses the power of inertia to successfully bring people into pension saving, and the complex decisions they must take to access their pension saving in retirement.
“Workplace pension schemes already want to be major part of the solution. The PLSA has called for a new set of product, communication and governance standards – underpinned by legislation – to pave the way for pension providers to give greater support to savers at retirement, irrespective of the size of their balance, their level of engagement, or what type of solution they use to access their pension.
“Our proposals – called Guided Retirement Income Choices – are designed to complement the Pension Freedoms and are not designed to replace any other existing regulatory approaches or guidance services, but rather to build on them to develop blended solutions that are more appropriate for future retirees.
“We very much look forward to participating in the planned call for evidence and to continuing our discussions with the Work and Pension Select Committee about our recommendations.”
More information about Guided Retirement Income Choices is available in the PLSA’s submission
to the Work and Pensions Select Committee inquiry into the pensions freedoms.
Mark Smith, Senior PR Manager
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Steven Kennedy, Senior PR Manager
020 7601 1737 | 07713 073024 | [email protected]