The Newshound

Labour plans to enrol 17 million workplace savers by default into an 'income for life' in retreat from pension freedoms

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.
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" consultation at the Association of British Insurers Long-Term Savings Conference, targeting the roughly 46% of pension pots now fully withdrawn on first access. The reforms would require workplace pension schemes to offer a default income option to savers approaching retirement, with inflation protection included in many cases. Workers could still opt out into a different arrangement.

The shake-up reverses a decade of "pension freedoms" that let over-55s spend or invest pots however they chose without buying an annuity.

Bell said too many private sector workers "are left without a genuine pension" despite saving throughout their working lives.

The plans are out for consultation with no confirmed timeline yet for implementation.

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