Fifth report - Protecting pension savers—five years on from the Pension Freedoms: Accessing pension savings
Select Committee
Work and Pensions Committee
HC 237
18 January 2022
Government Response (AI assessment · 33 of 33 classified)
Accepted
6
Acknowledged
13
Deferred
7
Rejected
3
Government response
Eighth Special Report - Protecting pension savers–five years on from the pension freedoms: Accessing pension savings: Government and the Financial Conduct Authority Responses to the Committee’s Fifth Report · published 27 Apr 2022
Recommendations & Conclusions
7 results
3
Conclusion
Deferred
The Minister for Pensions told us that the Department for Work and Pensions is trying...
Conclusion
The Minister for Pensions told us that the Department for Work and Pensions is trying to make pensions simpler. We support this principle. But simplicity alone is not enough to improve outcomes for savers. The Government and regulators will either …
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Government Response Summary
The government is deferring the response to MaPS and the FCA.
Department for Work and Pensions
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6
Recommendation
Deferred
Para 33
Many more people than currently do, however, would benefit from making greater use of the...
Recommendation
Many more people than currently do, however, would benefit from making greater use of the pension freedoms by choosing a mix of annuities, lump sums and drawdown Protecting pension savers—five years on from the Pension Freedomss Accessing pension savings 61 …
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Government Response Summary
The government states that the FCA will be responding to the recommendation separately.
Department for Work and Pensions
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8
Recommendation
Deferred
Para 35
We recommend that the Money and Pensions Service and the Financial Conduct Authority should develop...
Recommendation
We recommend that the Money and Pensions Service and the Financial Conduct Authority should develop proposals to increase the number of people choosing a mix of retirement products—including cash, drawdown and deferred annuities—to meet their changing needs at different stages …
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Government Response Summary
The DWP intends to issue a call for evidence in May 2022 to inform whether policy interventions are necessary to support savers in occupational pension schemes, before considering introducing default retirement pathways.
Department for Work and Pensions
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9
Conclusion
Deferred
Para 50
The Pension Schemes Act 2021 enabled collective defined contribution (CDC) schemes, which provide retirement incomes...
Conclusion
The Pension Schemes Act 2021 enabled collective defined contribution (CDC) schemes, which provide retirement incomes from a collective fund. The income from the fund received by members varies depending on how the fund performs. There is demand for the further …
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Government Response Summary
The FCA will be responding to this recommendation separately.
Department for Work and Pensions
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12
Recommendation
Deferred
For CDC schemes to provide a realistic alternative to annuities, people with defined contribution pension...
Recommendation
For CDC schemes to provide a realistic alternative to annuities, people with defined contribution pension pots need the option to be able to transfer to decumulation- only CDC schemes. In future these may be available through master-trusts regulated by the …
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Government Response Summary
The government will consider the recommendation in more detail, noting a Pensions Policy Institute DC data project and ongoing consultation on Pensions Dashboards Regulations, but does not commit to any specific action at this time.
Department for Work and Pensions
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15
Recommendation
Deferred
Para 63
There is a charge cap for savers who default to a scheme through auto-enrolment.
Recommendation
There is a charge cap for savers who default to a scheme through auto-enrolment. We recommend that there should be a similar charge cap for non-advised savers choosing a decumulation product through investment pathways. The Financial Conduct Authority should report …
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Government Response Summary
The government states that the FCA will be responding to this recommendation separately.
Department for Work and Pensions
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19
Recommendation
Deferred
Para 81
Advice is a personalised recommendation that can only be provided by a regulated firm at...
Recommendation
Advice is a personalised recommendation that can only be provided by a regulated firm at a cost. Few people seem to be willing to pay for financial advice for the decisions they make about their pension savings—even though doing so …
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Government Response Summary
The government defers action on reporting annually on progress to increase the uptake of pensions advice, stating that transactions should not be enabled on dashboards initially and future enhancements to dashboards functionality should be decided after the initial offer has been tested with users.
Department for Work and Pensions
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