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Labour plans to hand 17 million private-sector workers a default 'income for life', but it could put inheritances at risk

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' reform at the Association of British Insurers conference, automatically enrolling around 17 million private-sector workers into a default income stream designed to last their entire retirement. The proposals are out for public consultation and no timeline has been confirmed.

The shift away from pension freedoms means savers' pots could be drawn down by a managed scheme rather than passed on to children as inheritance.

Torsten Bell says private-sector workers are 'left without a genuine pension' despite saving diligently, with the reform aimed at closing the gap with public-sector defined benefit schemes.

People can still opt out of the default guided route and choose their own retirement income arrangement.

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