Greater flexibility in how retirement savings can be used is key to renew 'social contract' between generations, the Association of Consulting Actuaries (ACA) has said.
In this context, ‘social contract' looks to pension, saving and tax arrangements offering a fair balance across the generations, so people of all ages feel they are not being disadvantaged by the pensions...
Nearly eight in ten employees have a workplace pension today compared to less than half of people when auto-enrolment (AE) was introduced in 2012, according to a report by the Office for National Statistics (ONS).
The government should encourage people to save more into pensions after life stages such as when children leave home and after mortgages and student loans are paid off, the Institute for Fiscal Studies (IFS) says.
Millions of workers are set to face “life changing retirement shortfalls” as lower growth forecasts could wipe a third off pot values, according to Lane Clark & Peacock (LCP).
Contract-based pension providers could be required to nudge savers to book Pension Wise appointments before accessing their savings.
The Pensions Administration Standards Association (PASA) has launched a defined contribution (DC) transfer working group.