Plans to improve retirement product options for savers have been described as sensible by People’s Partnership1, which provides The People’s Pension to more than six million people across the UK,
Commenting on Government proposals to improve access to decumulation products for Defined Contribution savers2, Phil Brown, director of policy at the provider of the UK’s largest master trust
Speaking after the deadline for the consultation closed, he said: “As the typical automatic enrolment saver gets older, we think it’s crucial that the decumulation options for these workers are significantly improved.
“Although more details are required, there are real potential benefits from the proposed reforms from the Department for Work and Pensions. At face value, the evidence suggests that a strong steer towards a suitable product may improve decision making for a significant proportion of defined contribution pension savers.
“We see a framework in which people are free to take money from their defined contribution pension savings via a good quality product as a sensible plan. Automatic enrolment has been a tremendous success over the past decade, but it’s vital that these 11 million savers are able to easily access their savings when they need to.”
Notes to Editor’s
1. People’s Partnership provides The People’s Partnership, the largest independent master trust in the UK, serving more than six million pension savers across the UK and manages more than £21bn in assets. As a business without shareholders, it reinvests its profits with the aim to help customers and achieve better financial outcomes for everyone.
2. The DWP launched the Helping savers understand their pension choices: supporting individuals at the point of access consultation in July and it closed on on September 5: Helping savers understand their pension choices: supporting individuals at the point of access – GOV.UK (www.gov.uk)