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
3 results
4
Recommendation
Not Addressed
Para 19
People can usually take up to 25% of their pension as a tax-free lump sum.
Recommendation
People can usually take up to 25% of their pension as a tax-free lump sum. This is one of the most well-known UK pension policies and leads to many people who access their pensions for the first time taking poor …
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Government Response Summary
The government response focuses on Collective Defined Contribution (CDC) schemes and doesn't address the recommendation to research decoupling the tax-free portion of pension pots. It is therefore not addressed.
Department for Work and Pensions
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5
Conclusion
Not Addressed
Para 32
We were told that most savers want a reliable income in retirement.
Conclusion
We were told that most savers want a reliable income in retirement. Annuities provide this for savers with defined contribution pensions, but have dramatically fallen in use since the introduction of pension freedoms. The transition from defined benefit schemes to …
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Government Response Summary
The government's response discusses the code of practice for CDC pension schemes instead of addressing the observation about the decline in annuity use. Therefore it is not addressed.
Department for Work and Pensions
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24
Conclusion
Not Addressed
Most guidance is currently delivered by individuals, which is costly, or through written communication, which...
Conclusion
Most guidance is currently delivered by individuals, which is costly, or through written communication, which is unengaging. In future we envisage a significant proportion of guidance or triage services will be delivered through digital tools. This should be a key …
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Government Response Summary
The government acknowledges the benefits of consultation and announces that the NMPA will rise to 57 in April 2028. This does not address the need for digital tools in guidance, so is classified as not addressed.
Department for Work and Pensions
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