Source · Select Committees · Work and Pensions Committee
Recommendation 8
8
Accepted
People in generation X and older without access Defined Benefit pension saving will have had...
Recommendation
People in generation X and older without access Defined Benefit pension saving will have had limited time to build up pension savings through auto-enrolment and are therefore at risk of not hitting their retirement adequacy targets. We recommend the Government should consult on a plan to address this challenge and report back to us by March 2023. According to the Office for National Statistics, almost a third of working age people do not expect to have any pension provision beyond the State Pension when they retire. We recommend the Government should consult on a plan to address this challenge and report back to us by March 2023. According to the Office for National Statistics, almost a third of working age people do not expect to have any pension provision beyond the State Pension when they retire. Given the importance of the State Pension to the retirement income of many people, we 56 Protecting pension savers – five years on from the pension freedomss Saving for later life recommend the Government should expressly commit to the continuation of the triple lock. (Paragraph 59) Self-employed people
Government Response Summary
The government does not believe now is the right time to consult and has taken steps to address this challenge, including introducing the new state pension, providing further information and guidance to savers, and considering how to consolidate small pots.
Government Response
Accepted
HM Government
Accepted
We do not believe now is the right time to consult and we have taken steps to address this challenge, including introducing the new state pension, providing further information and guidance to savers and considering how to consolidate small pots to the benefit of savers. Generation X can benefit from the new State Pension, which will continue to provide the foundation for retirement, but the government recognises that there is no single solution to enable older workers to build on this. We believe it is important that people have all the information and guidance they need to be able to better understand and plan for their retirement prospects. We have recently implemented Simpler Annual Benefit Statements (SABS) and are working on other measures such as pensions dashboards and the Mid-Life MoT. We are committed to demonstrating the benefits of working for longer, to move to a more partial retirement or more flexible working arrangements as a starting point for some savers. As well as information on opportunities for voluntary saving above AE minima, we are continuing to explore how easy it is for people to save above the minimum rates and whether processes are understood by savers and are frictionless. In response to the latest report by the ABI/PLSA working group on deferred small pots, we are considering how to address the challenge that small pots present, so that pots can be consolidated to provide better value for money, and be more easily accessible, for savers.