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Labour plans a default 'income for life' for 17 million private sector workers in a 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' shake-up at the Association of British Insurers Long-Term Savings Conference, targeting the 17 million private sector workers currently left without a guaranteed income in old age. The plan would require workplace pension schemes to offer savers a default managed income route as they approach retirement, in many cases with inflation protection built in. It marks a significant reversal from the 'pension freedoms' reforms of a decade ago, which let savers spend their pots as they chose.

Bell said too many private sector workers 'are left without a genuine pension' when they stop working.

The proposals are out for public and industry consultation and no implementation timeline has been set.

The pensions industry has welcomed the plan, with Aviva among those backing the reform.

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