Labour plans to put 17 million private sector savers into default income-for-life pensions 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 unveiled the 'Guided Retirement' plan at the Association of British Insurers Long-Term Savings Conference on Tuesday, requiring workplace pension schemes to offer a default income option to workers approaching retirement. The shake-up targets the collapse of private sector defined benefit schemes over the past 30 years, which once guaranteed inflation-protected incomes for life. Critics warn Labour is dismantling pension freedoms won under the coalition government, potentially trapping savers in annuity-style deals they cannot later reverse.

In 2026-26, around 46% of first-time pension pot accesses involved savers withdrawing the entire fund at once.

Pensions expert Steve Webb warned most people do not currently choose annuities and would be unable to change their minds once locked in.

Bell said private sector workers are being given what public sector workers 'take for granted' — a secure, often inflation-protected income for life.

Daily MailFears over Labour's new nanny state drive on private pensions LBCPrivate sector pension savers to be given ‘simpler’ options to take an income GB NewsDWP unveils pension shake-up that could give 17million workers an income for life City A.M.Private workers to get guaranteed pension income for life in bid to close savings gap The TimesWhat the new pensions shake-up could mean for your retirement Traders UnionUK government launches default pension plans for private sector retirement income - Traders Union GOV.UKNew plans “resurrect” genuine pensions for millions of private sector workers - GOV.UK The TimesPrivate sector workers get right to pension income for life

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