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Chancellor Jeremy Hunt has reaffirmed the Authorities’s plans to offer individuals one ‘pension pot for all times’, moveable from job to job, regardless of considerations shared by the monetary recommendation trade.
Mr Hunt launched a session on the proposals as a part of his Autumn Assertion in November.
The reforms would give employees the precise to appoint the pension scheme they need their employer to pay into, which the session claims might assist remedy the issue of misplaced pension pots as employees transfer jobs
Advisers stated the plan might make communication harder and scale back employer curiosity in pensions, in accordance with a survey by Royal London.
Gail Izat, managing director for office at Normal Life, stated the Pot for Life ambitions weren’t a short-term repair and would require a big stage of planning and preparatory work.
She added that the much-delayed Pension Dashboard undertaking should be accomplished first.
She stated: “It is value remembering that the UK is already on the journey to creating this infrastructure via different initiatives, just like the Pensions Dashboard and small pots work however these initiatives should be accomplished earlier than a pot for all times system can change into viable.
“With round 14 million outlined contribution pension savers at the moment not on observe for his or her anticipated retirement revenue in accordance with Phoenix Insights, we additionally must see a better concentrate on financial savings adequacy prioritised.
“Plans to decrease the age of eligibility for auto-enrolment to 18 and take away the decrease earnings set off needs to be accelerated and, when the time is true, minimal contributions must rise to offer individuals an opportunity of securing a good lifestyle in retirement. Introducing Pot for Life with out these different essential reforms will add additional complexity to our pension system.”
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