Analysing the impact of private pension measures on member outcomes
This publication gives high-level estimates of the July 2023 package of private pensions announcements and the planned Automatic Enrolment 2017 Review measures.
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Details
This report builds on a range of analysis estimated by the Department for Work and Pensions and a range of modelling from the Government Actuary’s Department. Any estimates are subject to change and considerable uncertainty, particularly as policy details are yet to be finalised.
The reforms this report consider are:
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the 2017 Automatic Enrolment review measure – legislation is going through Parliament in 2023 which will enable savers to save from aged 18 (from 22 currently) and receive contributions from the first pound they earn (from £6,240 currently)
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addressing small pension pots – our consultation proposes a maximum pot limit and the creation of a central clearing house to support the delivery of a multiple default consolidator approach to ending the proliferation of deferred small pots.
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designing a value for money framework – our consultation recommends a value for money framework to assess across costs, investment performance, and services. This will also seek to include new powers for regulators to be able to wind up or consolidate consistently underperforming schemes
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Decumulation in Trust Market – our consultation will seek views on placing new duties on trustees to provide decumulation services or partner with other providers to do so, and that this duty includes the offer of a collective defined contribution (CDC) first arrangement in decumulation. It is expected this will provide a minimum level of support at the point of access
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collective defined contributions – the consultation invited views on a proposed approach for broadening CDC provision to accommodate multi-employer CDC schemes and explored some key questions regarding decumulation only CDC arrangements