Pensions - Articles - Outcome of consultation on pensions decumulation


Kathryn Fleming, Partner, Hymans Robertson comments on the outcome of the Government’s consultation on pensions decumulation.

 “It is good to see additional duties being placed on pension trustees to ensure decumulation options are in place for scheme members. They are well placed, we believe, to make decisions that reflect the wants and needs of their memberships. We agree with the overall aim for every pension scheme to either directly or through a partnering arrangement provide decumulation solutions for their members.

 This will act to improve member’s financial outcomes. Therefore, we believe that all trust-based schemes should be required to provide a solution to support a member in accessing the full range of the pension freedoms. However, it is imperative that this is not just product driven, but it is delivered in a way that best meets the needs of the members. It needs to be delivered in conjunction with a support service that helps a member better understand their retirement goals. What’s also clear is the lack of consensus across the pensions industry that the new product should be CDC.

 We believe that pension and product providers should have the freedom to design a solution that best meets the needs of their members, of which CDC is only one solution. While we welcome the Government’s acknowledgement that CDC will not be a solution for all, but it will have a role, we are disappointed to see its continued focus on it as the primary decumulation option.

 In doing this the Government is missing an opportunity to push the industry to innovate in this area. It also needs to be approached with caution as there is a broader conversation to be had regarding the extent to which irreversible solutions will have a place in default decumulation.”

Back to Index


Similar News to this Story

Wish list for the occupational pensions industry in 2025
As one year closes and another begins, it's an opportune moment to set our sights on the future. The UK occupational pensions industry faces nume
PSIG announces outcome of Consultation
The Pensions Scams Industry Group (PSIG), which was established in 2014 to help protect pension scheme members from scams, today announced the feedbac
Transfer values fell to a 12 month low during November
XPS Group’s Transfer Value Index reached a 12-month low, dropping to £151,000 during November 2024 before then recovering to its previous month-end po

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.