Chancellor Jeremy Hunt has reaffirmed the Authorities’s plans to offer folks one ‘pension pot for all times’, moveable from job to job, regardless of issues shared by the monetary recommendation trade.
Mr Hunt launched a session on the proposals as a part of his Autumn Assertion in November.
The reforms would give employees the best to appoint the pension scheme they need their employer to pay into, which the session claims may assist remedy the issue of misplaced pension pots as employees transfer jobs
Advisers mentioned the plan may make communication harder and scale back employer curiosity in pensions, in line with a survey by Royal London.
Gail Izat, managing director for office at Customary Life, mentioned the Pot for Life ambitions weren’t a short-term repair and would require a major stage of planning and preparatory work.
She added that the much-delayed Pension Dashboard venture should be accomplished first.
She mentioned: “It is price remembering that the UK is already on the journey to creating this infrastructure by means of different initiatives, just like the Pensions Dashboard and small pots work however these initiatives should be accomplished earlier than a pot for all times system can grow to be viable.
“With round 14 million outlined contribution pension savers at present not on observe for his or her anticipated retirement earnings in line with Phoenix Insights, we additionally have to see a larger concentrate on financial savings adequacy prioritised.
“Plans to decrease the age of eligibility for auto-enrolment to 18 and take away the decrease earnings set off needs to be accelerated and, when the time is correct, minimal contributions have to rise to offer folks an opportunity of securing an honest way of life in retirement. Introducing Pot for Life with out these different obligatory reforms will add additional complexity to our pension system.”
