Labour is accused of tearing up 'pension freedoms' as default lifetime incomes spark fears savers will be locked into unwanted 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' shake-up on Tuesday, requiring providers to automatically place around 17 million private sector workers into default lifetime income arrangements unless they actively opt out. Experts warned the plans effectively resurrect annuity-style deals that most savers have chosen to avoid since pension freedoms were introduced under the coalition government.
In 2025-26, 46% of first-time pension pot accesses emptied the funds entirely, the justification Labour cited for the overhaul.
Pension providers questioned whether the scheme would be a 'safety net rather than a straitjacket', warning savers may be locked into income deals they cannot later change.
Former pensions minister Steve Webb cautioned that most people do not currently choose annuities, raising doubts about imposing them as the default.
