Chancellor pushes forward with ‘Pot for Life’

Chancellor Jeremy Hunt has reaffirmed the Authorities’s plans to provide individuals one ‘pension pot for all times’, moveable from job to job, regardless of considerations 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 precise to appoint the pension scheme they need their employer to pay into, which the session claims may assist resolve the issue of misplaced pension pots as employees transfer jobs

Practically two thirds (63%) of advisers are involved concerning the impression of the Authorities’s proposed lifetime pension supplier mannequin.

Advisers stated the plan may make communication harder and cut back employer curiosity in pensions, in accordance with a survey by Royal London.

Gail Izat, managing director for office at Normal Life, stated the Pot for Life ambitions weren’t a short-term repair and would require a major degree of planning and preparatory work.

She added that the much-delayed Pension Dashboard challenge should be accomplished first.

She stated: “It is value remembering that the UK is already on the journey to creating this infrastructure by 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 turn into viable.

“With round 14 million outlined contribution pension savers at the moment not on monitor for his or her anticipated retirement revenue in accordance with Phoenix Insights, we additionally must see a better 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 true, minimal contributions must rise to provide individuals an opportunity of securing a good way of life in retirement. Introducing Pot for Life with out these different needed reforms will add additional complexity to our pension system.”


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