Labour is accused of tearing up 'pension freedoms' as 17m savers face default annuity-style 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 unveiled the 'Guided Retirement' scheme at the Association of British Insurers conference on Tuesday, requiring pension providers to automatically enrol savers approaching retirement into annuity-style income deals. The change affects around 17 million private sector workers, and 46 per cent of first-time pension pot accesses in 2025-26 involved the entire pot being withdrawn.
Steve Webb, a partner at consultancy LCP, warned most people do not currently choose annuities and would not be able to change their mind later.
Quilter's Jon Greer said default plans should be 'a safety net rather than a straitjacket' and that savers must retain freedom to choose alternatives.
