Fifth report - Protecting pension savers—five years on from the Pension Freedoms: Accessing pension savings

The government acknowledges the need for more support for savers and lists ongoing measures like Pension Wise, Pensions Dashboards, Mid-life MOT, and Stronger Nudge, without committing to any new specific action.

The government acknowledges the importance of joint consultations between TPR and FCA and supports this goal where opportunities permit, citing examples of collaborative work. DWP intends to issue a call for evidence in May to consider what members of trust-based schemes want in terms of information and support.

The government states that amending the level of PAA would depend on changes being made. The government continues to monitor the uptake of the PAA to understand the success of the scheme and is keeping the level under review.

The government supports MaPS’ guidance transformation strategy, which will seek to triage members towards the guidance service most appropriate for them and increase the flexibility of Pension Wise so that it may more be more effectively tailored towards an individual’s needs.

The government did not commit to trialling automatic Pension Wise appointments, but mentioned that TPR and the FCA promote the tools available from MoneyHelper and will continue to work with partners to promote guidance services.

The Government agrees that digital tools have an important role and encourages MaPS to go further in developing its digital offer, supporting MaPS' guidance transformation strategy, but notes some people may need additional support.

The government acknowledges the issue of deferred small pots and describes existing actions like Pensions Dashboards, Simpler Annual Benefit Statements and a de minimis on flat fee charges. They are working with an industry group to develop automated consolidation solutions but do not directly address the specific recommendations regarding the PAA.

The government states that individuals using dashboards will be able to delegate access to MaPS guiders or authorized financial advisers and that the MaPS dashboard will be integrated into the MaPS retirement planning hub to better tailor guidance interventions.

The government welcomes the industry-led campaign for Pensions Engagement Season and states they will continue to look at ways that they can prompt people to engage with their pensions, including what role annual benefit statements can play.

The government agrees that pensions dashboards offer a significant opportunity and are working closely with regulators, pension providers, and administrators on this issue.

The department is working closely with the ABI/PLSA-led industry coordination group on consolidating small pension pots and expects a progress report in May 2022.

The government acknowledges the challenges of delivering a statement season and states they will continue to look at ways to prompt people to engage with their pensions, but offers no specific action beyond welcoming the industry-led Pensions Engagement Season.

The government acknowledges the benefits of timely and thorough consultation and achieving cross-party consensus where possible. They cite consultations regarding the NMPA increase as evidence of this approach, while protecting existing rights.