The Work and Pensions Select Committee has today (10 March) released the paper ‘Progress with automatic enrolment and pensions reforms’ calling for the establishment of a single pension regulator and an independent commission in the new Parliament. The Institute and Faculty of Actuaries (IFoA) is encouraged to see the Committee address a number of areas in the report that have been raised about the pension freedoms, such as the need to protect consumers. It is important that a new Government takes a long term view and considers the full impact of the pension reforms for both existing and future retirees.
Gareth Connolly, Chair of the IFoA Pensions Board, comments,
“It is good to see the Committee looking into more detail of how the new pension freedoms will affect consumers. The IFoA would welcome a review of consumer and industry behaviour during the first six months after the pension freedoms come into effect to see if current legislation is adequate or needs revision.
"A review of the age at which pension savings can be accessed, which is currently 55 and rising to 57 by 2028, would be welcomed as it could go some way to alleviating some of the risk that individuals may run out of money in retirement.
"The IFoA has previously stated concerns regarding the promised guidance individuals are due to receive in the run up to retirement and it is important that this guidance is fit for purpose and helps individuals plan appropriately for their retirement needs.
"The IFoA welcomes the steps Government has taken in the run up to April, when the pension freedoms come into effect, and that the Committee has recognised that further small steps in developing the retirement framework will be required after implementation. This will be of great assistance in ensuring that the next generation of retirees will have a pension framework that enables them to have good retirement outcomes."
|
