The Pensions and Lifetime Savings Association (PLSA) has said that amendments to Department for Work and Pensions’ (DWP) proposals for the Stronger Nudge don’t go far enough.
Joe Dabrowski, Deputy Director of Policy, PLSA, said: “The PLSA is a big believer in more people accessing Pension Wise guidance, but is not fully convinced that the Stronger Nudge proposals will deliver this. However, many of the concerns raised by the PLSA to government on Stronger Nudge proposals have been listened to, and amendments made as a result.
“Unfortunately, savers with small pots of £1,000 or less are not exempted from the process, which will see them delayed or suffer increased costs when they try to access their pension. The result of this could be that they will be nudged to hear more about options that aren’t even available to them which, in turn, may well jeopardise other automatic small pots solutions that the industry is working on to help the saver out.
“The PLSA does welcome that the date the regulations come into force has been postponed until 1 June 2022 from the previous April date, which will give schemes more of a lead in time to prepare.”
Mark Smith, Senior PR Manager
020 7601 1726 | [email protected]
Steven Kennedy, Senior PR Manager
020 7601 1737 | 07713 073024 | [email protected]