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Labour plans to push 17 million savers into default income-for-life pensions unless they opt out, sparking fears for 'pension freedoms'

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' plan at the Association of British Insurers Long-Term Savings Conference on Tuesday, requiring workplace pension schemes to offer savers a default income option as they approach retirement. Critics warn the shake-up effectively reverses the landmark 'pension freedoms' reforms introduced under the Tory-Lib Dem coalition. The plans cover around 17 million private sector workers currently saving into defined contribution schemes.

Steve Webb, a partner at consultancy LCP, warns most people do not currently choose annuities and would not be able to change their mind once locked in.

In 2025-26, around 46% of first-time pension pot accesses involved the entire pot being fully withdrawn — the statistic Labour is using to justify the overhaul.

Bell insists the reforms will 'resurrect proper pensions' giving private sector workers the inflation-protected income for life that public sector workers already take for granted.

MoreDaily MailFears over Labour's new nanny state drive on private pensionsLBCPrivate sector pension savers to be given ‘simpler’ options to take an incomeThe TelegraphLabour plans to tear up ‘pension freedoms’GB NewsDWP unveils pension shake-up that could give 17million workers an income for lifeCity A.M.Private workers to get guaranteed pension income for life in bid to close savings gapThe TimesWhat the new pensions shake-up could mean for your retirementTraders UnionUK government launches default pension plans for private sector retirement income - Traders UnionGOV.UKNew plans “resurrect” genuine pensions for millions of private sector workers - GOV.UKThe TimesPrivate sector workers get right to pension income for life
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