Today the Government responded to the Work and Pensions Select Committee’s (WPSC) final report in its inquiry into pension freedom and choice.
The WPSC report called for a package of measures to create better informed, more engaged pensions savers and a “default decumulation pathway” was proposed for less engaged savers.
In response to the report Tim Gosling, Policy Lead: DC, PLSA, said:
"The pension freedoms have opened up a wealth of opportunities for savers but this flexibility also brings new challenges. Deciding what to do with your pension savings at retirement is an extremely complex choice, and as we approach a time where the vast majority of savers will rely solely on defined contribution schemes, we must ensure people have help and support to make the right decisions. We therefore urge the Government to reconsider the benefits of implementing a signposting system to help savers. Whilst people should always be encouraged to make active decisions it is important that support is there for those who need it. A default or signposted pathway leading to an income product would make accessing an income easier while preserving the right to a free choice."
NOTES TO EDITORS
The Government's response can be found here.
Robyn Margetts, Head of Media and PR, Pensions and Lifetime Savings Association
T: 020 7601 1726, M: 07713 073023, E: [email protected]
Kathryn Mortimer, Press Officer, Pensions and Lifetime Savings Association
T: 020 7601 1748, M: 07901 007713, E: [email protected]
ABOUT THE PENSIONS AND LIFETIME SAVINGS ASSOCIATION
We’re the Pensions and Lifetime Savings Association; the national association with a ninety year history of helping pension professionals run better pension schemes. Our members include over 1,300 pension schemes with 20 million members and £1 trillion in assets, and over 400 businesses. They make us the voice for pensions and lifetime savings in Westminster, Whitehall and Brussels.
Our purpose is simple: to help everyone to achieve a better income in retirement. We work to get more money into retirement savings, to get more value out of those savings and to build the confidence and understanding of savers.