Labour plans to tear up 'pension freedoms' by defaulting 17 million private sector savers into income-for-life deals
Torsten Bell, the pensions minister, whose reforms would also launch a separate consultation on Retirement Collective Pension Schemes, which pool risk to deliver more stable lifetime payouts.
Pensions minister Torsten Bell unveiled the 'Guided Retirement' overhaul at the Association of British Insurers Long-Term Savings Conference on Tuesday, requiring workplace pension schemes to offer savers a default income option as they approach retirement. Critics warn Labour is dismantling pension freedoms introduced under the Tory-Lib Dem coalition, with experts noting most workers currently reject annuities — and will struggle to change their minds later.
In 2025-26, 46 per cent of first-time pension pot accesses emptied the funds entirely, the government says justifies the shake-up.
Quilter's Jon Greer warned the default should be 'a safety net rather than a straitjacket' and people must retain freedom to choose differently.
Steve Webb, a former pensions minister, warned that savers defaulted into annuity-style deals would not easily be able to reverse the decision.
