The industry has welcomed the government’s renewed commitment to the Pensions Bill, saying the legislation will make “pre-planning for retirement a whole lot easier”.
Speaking at the House of Lords yesterday, the Queen, on behalf of the government, said measures would be brought forward to “help people save for later life”.
Supporting documents outlined the Pensions Schemes Bill, which was originally announced in the October Queen’s Speech.
The bill will see news rules for pension dashboards, collective defined contribution schemes and new powers for The Pensions Regulator.
It had already garnered cross-party support before being dropped as Parliament was dissolved ahead of the December general election.
Gregg McClymont, director of policy at The People’s Pension, said it was good to see the return of the Pensions Scheme’s Bill, while Jamie Jenkins, head of global savings policy at Standard Life, said it was encouraging to see the legislation return to the agenda.
The government said it would “provide a framework to support pensions dashboards”, including rules that compelled pension schemes to provide accurate information to consumers. New powers for regulators would ensure the relevant schemes complied, the document said.
Nathan Long, senior analyst at Hargreaves Lansdown, said: “Pre-planning for retirement should get a whole lot easier as the government forces pension schemes to share member data.
“This is much needed, but the scale of the project means it looks unlikely we’ll see a dashboard until 2021 at the earliest.”
The government also pledged to create a framework for the establishment, operation and regulation of CDC schemes.
These differ from defined benefit pensions because they do not guarantee a certain income in retirement. Instead, CDCs have a target amount they will pay out, based on a long-term, mixed-risk investment plan.
They are also different from traditional defined contribution plans in that they do not produce individual pension pots. They invest the savings in a larger collective pot, which provides an income to individuals during their retirement.
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