Select committee: Work and Pensions Committee
Recommendation 31
Fifth report - Protecting pension savers—five years on from the Pension Freedoms: Accessing pension savings
Published 18 Jan 2022
Paragraph 124
Addressed to Department for Work and Pensions
Work and Pensions Committee Protecting pension savers – five years on from the Pension Freedoms: Accessing pension savings All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
The midlife MOT is free support for people in their 40s, 50s and 60s to make plans about work, wellbeing and money. We welcome the principle of a midlife MOT, but believe that the policy is not yet providing the support envisaged for most savers. For the “my money” part of the midlife MOT, we recommend that the Department for Work and Pensions, supported by the Money and Pensions Service, undertakes research to: a) Develop the most effective format(s) for midlife MOTs; b) Establish the most efficient delivery route for midlife MOTs; and c) Maximise the take up of the midlife MOT.
From: Work and Pensions Committee, Fifth report - Protecting pension savers—five years on from the Pension Freedoms: Accessing pension savings (HC 237), paragraph 124, 18 January 2022
Government response
The government responded to the whole report on 27 April 2022 (deadline 18 March 2022).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government "notes" the Committee's report, commits to a call for evidence in May 2022 on occupational scheme decumulation, and declines several recommendations, including automatic Pension Wise bookings, a usage goal and annual reporting.
- On Pension Wise, the government "disagree[s] with the proposal to automatically book Pension Wise appointments", citing risks of inappropriate guidance and disengagement; it does "not support setting a goal" for combined use of Pension Wise and paid-for advice.
- It commits to a Stronger Nudge, in force from 1 June 2022, requiring schemes to offer to book a Pension Wise appointment for members accessing defined contribution benefits.
- On trust-based schemes, it says it would "not be appropriate" to introduce investment pathways-style requirements until more is known, and DWP intends to issue a call for evidence in May 2022.
- It believes an annual assessment of pension freedoms and annual reporting on pensions advice "is not necessary" at this time, but will "keep this recommendation under review".