Source · Select Committees · Work and Pensions Committee
Recommendation 1
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The pension freedoms gave people the freedom to choose what to do with their money.
Conclusion
The pension freedoms gave people the freedom to choose what to do with their money. On balance these changes have been a success and we do not want to see them rolled back. However, many savers need more support than they currently receive in order to make good decisions about how they access their pension savings.
Paragraph Reference:
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Government Response
Acknowledged
HM Government
Acknowledged
The government is fully committed to providing savers with the relevant information and support in order for them to make appropriate decisions when they access their pension. Until we know more about what is already on offer and the expectations of occupational scheme members, it would not be appropriate for government to intervene. That is why DWP intends to issue a call for evidence in May 2022. The government engages and works closely with regulators and industry to try and ensure individuals can make decisions which are best for their circumstances. Pension Wise was introduced to ensure savers had access to free, impartial guidance to help them make informed decisions regarding their pension savings. Additionally, we anticipate that pensions dashboards will help savers navigate their pension with increased confidence. DWP is already playing an active role in ensuring savers have the information and support they need. This involves implementing a number of new measures including: • Improving clarity and consistency in communications from schemes and providers to savers, through requiring certain schemes to deliver the Simpler Annual Benefit Statement. Government and Financial Conduct Authority Responses to the Committee’s Fifth Report 5 • Pensions Dashboards will provide information about an individual’s total pensions saving on demand and, with their permission, to guiders and advisers. This will better equip savers to engage with key decisions about saving into and accessing their pensions. • DWP’s Mid-life MOT initiative will also create awareness and help people make informed decisions, some way out from decumulation. • DWP’s Stronger Nudge policy is designed to further increase take up of guidance by requiring providers to offer to book an appointment for the saver. The government will continue to review the ways in which it can improve the support offered to individuals. The TPR’s corporate strategy sets out their commitment to put the saver at the heart of all that they do. They are committed to continue to work with other regulators, government and trustees to improve savers’ access to helpful information, guidance and, where appropriate, advice. Options when accessing pensions