Protecting pension savers – five years on from the pension freedoms: Saving for later life

Work and Pensions Committee Closed Inquiry
Opened: 15 Dec 2021 Closed: 15 Feb 2023 Parliament page
This inquiry is looking at saving for later life and what more needs to be done to help people plan and save for retirement. We are interested in: Whether households in the UK have enough pension savings for retirement What advice and guidance people need when saving for retirement What … Read more
20 Recommendations
2 Conclusions
1 Report
6 Oral sessions
9 Letters
6 Events
Activity timeline 23 events
23 Jan
2023
Report published
19 Oct
2022
Correspondence
30 Sep
2022
Report published
7 Sep
2022
Correspondence
7 Sep
2022
Correspondence
20 Jul
2022
Correspondence
6 Jul
2022
Oral evidence
6 Jul
2022
Correspondence
6 Jul
2022
Correspondence
6 Jul
2022
Correspondence
6 Jul
2022
Formal meeting (oral evidence session) · Room 6, Palace of Westminster
22 Jun
2022
Correspondence
Oral evidence sessions 6 sessions
6 Jul 2022
View on parliament.uk
Work and Pensions Committee
Guy Opperman MP · Department for Work and Pensions Joanne Gibson · Department for Work and Pensions
15 Jun 2022
View on parliament.uk
Work and Pensions Committee
Anna Mowbray · Community Carol Young · NatWest Group Gary Dewin · The Co-op Group Jack Jones · TUC Jamie Heywood · Uber Terry Pullinger · Communication Workers Union Tim Jones · Tata Limited Tom Blenkinsop · Federation of Small Businesses (FSB)
8 Jun 2022
View on parliament.uk
Work and Pensions Committee
Caroline Siarkiewicz · Money and Pensions Service Charles Counsell · The Pensions Regulator Sarah Pritchard · The Financial Conduct Authority Sarah Pritchard · Financial Conduct Authority Sir Steve Webb · Lane, Clark & Peacock The Baroness Altmann CBE The Baroness Drake CBE
27 Apr 2022
View on parliament.uk
Work and Pensions Committee
Chris Noon · Hymans Robertson Colin Clarke · Legal and General Darren Philp · Smart Pension Jamie Jenkins · Royal London Joanne Segars · NOW:Pensions Peter Glancy · Scottish Widows Philip Brown · B&CE, the People’s Pension Will Sandbrook · NEST
23 Mar 2022
View on parliament.uk
Work and Pensions Committee
Christopher Brooks · Age UK Laurie Edmans · Financial Inclusion Commission Leah Evans · Institute and Faculty of Actuaries Martin Willis Nigel Stanley · NEST Members’ Panel Sophia Dimitriadis · International Longevity Centre Steven Taylor · Association of Consulting Actuaries Sue Ferns · Prospect Trade Union
23 Feb 2022
View on parliament.uk
Work and Pensions Committee
Carl Emmerson · Institute of Fiscal Studies Chris Curry · Institute for Fiscal Studies Nigel Peaple · Pension and Lifetime Savings Association Rob Yuille · Association of British Insurers
Title HC No. Published Items Response
Third Report - Protecting pension savers – five years on from th… HC 126 30 Sep 2022 22 Responded
Recommendations & Conclusions
22 results
1 Recommendation Acknowledged
Third Report - Protecting pension …
The Government has not acted on our recommendation to set a target of at least...
The Government has not acted on our recommendation to set a target of at least 60% for the combined use of Pension Wise and paid for advice when accessing pension pots for the first time. It also rejected our recommendation … Read more
Government Response
The government is committed to monitoring the use of Pension Wise and the impact of the Stronger Nudge, using metrics such as the volume of appointments attended and FCA Retirement Income data. They will continue to gather evidence and insight to support individuals in making decisions.
Department for Work and Pensions
View details
2 Conclusion Acknowledged
Third Report - Protecting pension …
Many newly auto-enrolled people make minimum contributions, not realising that this will not be enough...
Many newly auto-enrolled people make minimum contributions, not realising that this will not be enough to give them an adequate living standard in retirement. The Pensions Commission designed auto-enrolment to get median earners part of the way to its definition … Read more
Government Response
The government is committed to carrying out further analysis to measure the adequacy of retirement incomes for current savers, and will provide an update of their analysis as soon as the data is available. They consider that a collection of measures provides a greater range of insight than a single measure alone.
Department for Work and Pensions
View details
3 Recommendation Acknowledged
Third Report - Protecting pension …
Although there are two commonly used measures of adequacy, there is currently no consensus in...
Although there are two commonly used measures of adequacy, there is currently no consensus in support of a single definition or what target the system should aim to achieve. We heard that building a new consensus on this—involving employers, trade … Read more
Government Response
The government is committed to carrying out further analysis to measure the adequacy of retirement incomes for current savers, and believes a collection of measures, based on different methodology, provides a greater range of insight, than a single measure alone.
Department for Work and Pensions
View details
4 Recommendation Deferred
Third Report - Protecting pension …
We support the former Pensions Minister’s continued commitment to introducing the recommendations of the 2017...
We support the former Pensions Minister’s continued commitment to introducing the recommendations of the 2017 auto-enrolment review by the mid-2020s. It is Protecting pension savers – five years on from the pension freedomss Saving for later life 55 disappointing that … Read more
Government Response
The government remains committed to implementing the 2017 Review ambitions in the mid-2020s and aims to bring forward legislation at a suitable opportunity, with a consultation to ensure effective implementation.
Department for Work and Pensions
View details
5 Recommendation Acknowledged
Third Report - Protecting pension …
There is a consensus that many people need to increase their pension contributions if they...
There is a consensus that many people need to increase their pension contributions if they are to have an adequate income in retirement. Many told us that minimum contribution rates needed to increase above 8% if this was to happen. … Read more
Government Response
The government acknowledges that current contribution rates may not be adequate but states that its priority is to implement the 2017 Review measures in the mid-2020s and explore ways to prompt savers to engage with their pensions.
Department for Work and Pensions
View details
6 Recommendation Deferred
Third Report - Protecting pension …
The middle of a cost of living crisis is not the time to ask people...
The middle of a cost of living crisis is not the time to ask people to pay more into their pension. However, if they are to do so in future, work to prepare the ground needs to start now to … Read more
Government Response
The government is focused on economic stability and growth, and the next step for Automatic Enrolment is the implementation of the 2017 Review measures in the mid-2020s before looking at further changes. They are continuing to explore how to prompt savers to engage with their pensions.
Department for Work and Pensions
View details
7 Recommendation Deferred
Third Report - Protecting pension …
In addition to any increase in the statutory minimum, we have been persuaded that there...
In addition to any increase in the statutory minimum, we have been persuaded that there is scope to expand the use of targeted ways to improve outcomes or increase contributions. We recommend the Government commit to a trial of auto-escalation … Read more
Government Response
The government is focused on economic stability and growth, and will implement the 2017 Review measures in the mid-2020s as the next step for Automatic Enrolment before looking at further changes like auto-escalation schemes.
Department for Work and Pensions
View details
8 Recommendation Accepted
Third Report - Protecting pension …
People in generation X and older without access Defined Benefit pension saving will have had...
People in generation X and older without access Defined Benefit pension saving will have had limited time to build up pension savings through auto-enrolment and are therefore at risk of not hitting their retirement adequacy targets. We recommend the Government … Read more
Government Response
The government does not believe now is the right time to consult and has taken steps to address this challenge, including introducing the new state pension, providing further information and guidance to savers, and considering how to consolidate small pots.
Department for Work and Pensions
View details
9 Recommendation Acknowledged
Third Report - Protecting pension …
The number of self-employed people saving in a pension has declined since the late1990s when...
The number of self-employed people saving in a pension has declined since the late1990s when it was around 48%, to around 16%. This is in stark contrast to the 88% of workers eligible for auto-enrolment participating in pension saving. Trials … Read more
Government Response
The government is committed to making retirement saving simpler for self-employed people and is working with Nest Insight on trials using financial digital platforms to test tech-based nudges. DWP is working with BASDA to explore opportunities to support self-employed people save for their retirement.
Department for Work and Pensions
View details
10 Recommendation Acknowledged
Third Report - Protecting pension …
We are concerned that many people working in the gig economy may be missing out...
We are concerned that many people working in the gig economy may be missing out on their right as a worker to build up a pension through auto-enrolment. The Pensions Regulator (TPR) told us it faces considerable challenges in enforcement, … Read more
Government Response
The government will continue to work with TPR and BEIS on the gig economy issue, noting that many workers are already eligible for auto-enrolment, and BEIS continues to explore options for collecting data on labour market trends.
Department for Work and Pensions
View details
11 Recommendation Accepted
Third Report - Protecting pension …
We support TPR’s efforts to encourage gig economy employers to offer pensions to those workers...
We support TPR’s efforts to encourage gig economy employers to offer pensions to those workers who do not come under the definition in the Pensions Act 2008. We recommend that DWP explore what steps could be taken to support this, … Read more
Government Response
The government believes the definition of jobholder in the AE legislation is clear and does not need to be altered, with gig economy workers who meet the definition already being brought within the scope of AE through the Pensions Regulator's compliance work and clarified guidance on employment status.
Department for Work and Pensions
View details
12 Recommendation Acknowledged
Third Report - Protecting pension …
There is no consensus on how gender pension gap should be defined or any target...
There is no consensus on how gender pension gap should be defined or any target to reduce it. Reports produced by stakeholders to inform the debate suggest the gap is significant and that little sustained progress is being made to … Read more
Government Response
DWP continues to work with stakeholders across government to develop an appropriate definition of the gender pensions gap and build an evidence base to inform future policy outcomes.
Department for Work and Pensions
View details
13 Recommendation Acknowledged
Third Report - Protecting pension …
We recommend the Government consider the case for a carer’s credit, for example, to their...
We recommend the Government consider the case for a carer’s credit, for example, to their auto-enrolment pension. If it chooses not to do so, it must explain its alternative plan to address the gender pension gap mainly caused by labour … Read more
Government Response
The government is committed to continually monitor the use of Pension Wise which now includes the impact of the Stronger Nudge, and will continue to work with MaPS to consider feedback on users’ experience of the service and its impact on their knowledge of the options available to them.
Department for Work and Pensions
View details
14 Recommendation Deferred
Third Report - Protecting pension …
We heard that the level at which the auto-enrolment earnings trigger is set (£10,000) currently...
We heard that the level at which the auto-enrolment earnings trigger is set (£10,000) currently excludes too many people, with the result that they miss out on employer contributions and tax relief. We heard calls for it to be reduced … Read more
Government Response
The government remains committed to the implementation of the 2017 Review ambitions in the mid-2020s, aiming to bring forward legislation at a suitable opportunity and when parliamentary time allows, and will consult on the implementation of the review.
Department for Work and Pensions
View details
15 Recommendation Not Addressed
Third Report - Protecting pension …
We welcome the Government’s recognition of the importance of addressing the fact that some low...
We welcome the Government’s recognition of the importance of addressing the fact that some low earners (disproportionately women) miss out on tax relief because their pension scheme uses the ‘net pay’ arrangement for tax relief. Given this is a long-standing … Read more
Government Response
HMRC is not actively considering automatically enrolling the self- employed via the NICs system because their systems are not designed to collect or administer pension contributions, and it would present a significant challenge as new systems would be required.
Department for Work and Pensions
View details
16 Recommendation Acknowledged
Third Report - Protecting pension …
Divorced women’s pensions are much lower than those of men.
Divorced women’s pensions are much lower than those of men. There appear to be no reliable, regularly reported statistics on the number of pension sharing orders made on divorce. Research indicates that it may be as low as 5% of … Read more
Government Response
The government welcomes having regular and reliable statistics on pension sharing in principle and will engage with HMCTS to understand the barriers to producing and publishing such statistics.
Department for Work and Pensions
View details
17 Recommendation Acknowledged
Third Report - Protecting pension …
Almost half a million people have stopped claiming Child Benefit since 2013 to avoid the...
Almost half a million people have stopped claiming Child Benefit since 2013 to avoid the High Income Child Benefit charge. We recommend that DWP explain what arrangements it intends to put in place to ensure this does not have a … Read more
Government Response
The government has encouraged families who are responsible for a child under 12 to claim Child Benefit regardless of household income to help them build qualifying years of National Insurance for future State Pension entitlement and will keep this under review. Information on what parents should do to protect their future State Pension entitlement is clearly provided on the Child Benefit claim form.
Department for Work and Pensions
View details
18 Recommendation Acknowledged
Third Report - Protecting pension …
MaPS Chief Executive, Caroline Siarkiewicz, told us that the biggest challenge was working out how...
MaPS Chief Executive, Caroline Siarkiewicz, told us that the biggest challenge was working out how to help people understand their options and choices, “bearing in mind the huge numbers of people who do not know where to go for that.” … Read more
Government Response
The government supports appropriate marketing of guidance services, including MoneyHelper Pensions, subject to scrutiny. They are exploring further options for encouraging the use of guidance, and MaPS's Pension Guidance Transformation Strategy will improve triage and transfers between the services.
Department for Work and Pensions
View details
19 Recommendation Deferred
Third Report - Protecting pension …
We heard that concerns about stepping over the boundary from guidance into advice continue to...
We heard that concerns about stepping over the boundary from guidance into advice continue to constrain the support that pension schemes and employers can provide to savers. The regulators are working with pension schemes and providers to better understand these … Read more
Government Response
The government redirects the recommendation to the FCA, stating they lead on the provision of financial advice and have provided a separate response.
Department for Work and Pensions
View details
20 Recommendation Accepted
Third Report - Protecting pension …
It is clearly important that pension schemes can provide pension scheme members who have been...
It is clearly important that pension schemes can provide pension scheme members who have been auto-enrolled with information and tools to help them engage with their pensions. We recommend that TPR report back to us by March 2023 on the … Read more
Government Response
The government will report back to the Committee by March 2023 on the progress made in resolving concerns about Privacy and Electronic Communications Regulations preventing pension schemes from communicating with members, including engagement with the ICO and DCMS.
Department for Work and Pensions
View details
21 Conclusion Acknowledged
Third Report - Protecting pension …
We welcome the work being done to improve engagement and support savers in making decisions...
We welcome the work being done to improve engagement and support savers in making decisions while they save, for example, through the development of pensions dashboards and the Mid-Life MoT and simpler annual benefit statements. DWP, MaPS and the FCA … Read more
Government Response
The government will continue to help people become more informed savers, and are working closely with delivery partners to do so. The FCA has published rules for personal pension schemes, and are consulting on rules for dashboard operators.
Department for Work and Pensions
View details
22 Recommendation Rejected
Third Report - Protecting pension …
We heard that there is a consensus that auto-enrolment has been successful in increasing participation...
We heard that there is a consensus that auto-enrolment has been successful in increasing participation in workplace pension saving but also that it is time to address the challenges which mean many people are unaware they are not saving enough … Read more
Government Response
The government does not believe a new office is necessary, stating that the DWP already provides evidence and analysis, working closely with stakeholders.
Department for Work and Pensions
View details
Government Response AI assessment · 22 of 20 classified
Accepted 3
Acknowledged 12
Deferred 5
Not Addressed 1
Rejected 1
Total 20 recs + 2 conclusions
Correspondence 9 letters
19 Oct 2022 Correspondence from Financial Conduct Authority on the Saving for later life inquiry
Parliament page
7 Sep 2022 Correspondence with the Economic Secretary to the Treasury in connection with the Saving for later life inquiry
Parliament page
7 Sep 2022 Correspondence from the Minister for Pensions following up on oral evidence as part of the Saving for later life inquiry
Parliament page
20 Jul 2022 Correspondence to Minister for Pensions about the saving for later life inquiry 20.7.22
Parliament page
6 Jul 2022 Correspondence with the Money and Pension Service about the saving for later life inquiry
Parliament page
6 Jul 2022 Correspondence with the Economic Secretary to the Treasury about the Saving for later life inquiry
Parliament page
6 Jul 2022 Correspondence with The Pensions Regulator about the saving for later life inquiry
Parliament page
22 Jun 2022 Correspondence with the Economic Secretary to the Treasury relating to the saving for later life inquiry
Parliament page
8 Jun 2022 Correspondence with the Minister of State for Media, Data and Digital Infrastructure relating to data protection legislation
Parliament page