Labour plans to tear up 'pension freedoms' by putting 17 million savers into default income-for-life deals unless they opt out
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 announced the 'Guided Retirement' plan at the Association of British Insurers conference on Tuesday, requiring workplace pension schemes to offer a default income option as savers approach retirement. Experts warn the move effectively reverses the coalition-era pension freedoms that let people manage their own pots, with most workers currently choosing not to buy annuities.
In 2025-26, some 46% of first-time pension pot accesses involved the entire fund being emptied.
Steve Webb, a former pensions minister and partner at consultancy LCP, warned that under the new default system people would not be able to change their mind later.
Critics say Labour is locking 17 million savers into deals they may not want — rebranding state control as 'simplicity'.
