Jeremy Hunt prepares to deliver his Autumn StatementCopyright HM Treasury
Chancellor Jeremy Hunt has announced he will consult on “pot for life” pensions reforms.
In the Autumn Statement today (22 November) Hunt said the government would consult on giving pension savers a "legal right to require a new employer to pay pension contributions into their existing pension".
The Autumn Statement document said the government would launch a call for evidence on a lifetime provider model and small pots consultation. It said: "The government is launching a call for evidence on a lifetime provider model to simplify the pensions market by allowing individuals to move towards having one pension pot for life, and on a potential expanded role for collective defined contribution (CDC) schemes in future. The government will also introduce the multiple default consolidator model to enable a small number of authorised schemes to act as a consolidator for eligible pension pots under £1,000.
In separate letters to The Pensions Regulator and the Financial Conduct Authority, chancellor Jeremy Hunt and secretary of state for work and pensions Mel Stride set out their vision for the pensions market - noting the would explore a "Lifetime Provider Model", which would enable individuals to have one pension pot for life, reducing the barriers to engagement and increasing their control over their pension pots.
In the letter, Hunt and Stride said: "At Mansion House, the government set out a bold intention to deliver a programme of reforms, following industry consultation, to enable pension funds to provide a better offer to the nation's pension savers. Today, we set out a vision for the pensions market in 2030 that ensures there are suitable retirement options for savers supported by a streamlined pension provider market that is continually challenged to deliver value for every member."
