UK unveils plans for lifelong default pensions for 17 million private sector workers
Pensions Minister Torsten Bell set out plans that could give around 17 million private sector workers a default pension paying an income for life. He announced two consultations at the ABI Long-Term Savings Conference: one on how Guided Retirement would work, and one on draft rules for Retirement Collective Pension Schemes.
This summary was generated by AI; the official source prevails.
What does it mean?
If you save into a workplace pension, you may in future be able to choose a pension that pays a steady income for the rest of your life, rather than managing a lump sum yourself. These are proposals open to consultation, so nothing is final yet.
Who is affected?
Private sector workers saving into workplace pensions, and the pension providers who would have to offer these products.
What changes?
Previously, most private sector savers built up a pot with no guaranteed lifetime income; the government now proposes a default pension that pays income for life.