Legislation
Roadmap for workplace pension reforms published
Date
To be confirmed
Summary
The government has published a new paper setting out a 10-year roadmap for workplace pensions, aimed at strengthening retirement savings and ensuring long-term sustainability of the system.
This strategy brings together previous consultation proposals into a single plan to guide reforms over the coming decade.
The government has emphasised that these reforms are designed not only to ensure adequacy of retirement savings, but also to enhance fairness and trust in the pensions system. Employers will need to keep up to date with the legislative changes as they are phased in over the next decade, and employees are being encouraged to actively engage with their pension savings.
The roadmap sets out several key priorities:
Expansion of auto-enrolment
- Lowering the minimum age threshold so younger workers are automatically enrolled.
- Removing the lower earnings limit so that pension contributions are made from the first pound of earnings.
- Encouraging higher levels of saving among part-time and low-income workers.
Improving retirement options
- Simplifying the range of retirement products available so individuals can more easily make informed decisions.
- Encouraging the development of “decumulation pathways” to help people convert their pension savings into a sustainable income in retirement.
- Increasing access to guidance and financial advice at key decision points.
Defined Benefit (DB) pension schemes
- Reviewing how DB schemes are regulated to ensure they remain secure and well-funded.
- Exploring options for scheme consolidation to improve efficiency and reduce costs.
- Strengthening protections for members where schemes are under financial pressure.
Defined Contribution (DC) pensions
- Introducing tougher value-for-money requirements on pension providers.
- Benchmarking investment performance, costs, and charges to drive better outcomes for members.
- Encouraging greater use of “collective defined contribution” (CDC) schemes as an alternative model.
Boosting public confidence in pensions
- Introducing tougher value-for-money requirements on pension providers.
- Benchmarking investment performance, costs, and charges to drive better outcomes for members.
- Encouraging greater use of “collective defined contribution” (CDC) schemes as an alternative model.
Flexible working guide
The pandemic has undoubtedly altered the way many employers and employees think and feel about the traditional 9 to 5 in the office. Many companies have recently increased their flexible working offerings.…