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Labour's Guided Retirement plan will give 17 million private sector workers the option of a pension income for life

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 pension providers to offer workers a default annual income as standard when they approach retirement.

The shake-up targets the gap opened over 30 years as private sector defined benefit schemes — which guaranteed inflation-protected income for life — were shut down en masse.

Bell says too many private workers reach retirement with only a savings pot rather than a 'genuine pension', adding the plan will stop savers having to 'become investment experts overnight'.

A separate consultation on Retirement Collective Pension Schemes is also launched, with draft regulations letting providers use them as a default — pooling risk to deliver more stable lifetime income.

MoreLBCPrivate sector pension savers to be given ‘simpler’ options to take an incomeGB 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 gapTraders 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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