Lifetime provider model risks 'throwing away' AE gains, ABI says

Report says pot for life would leave those with smaller pots in ‘lower performing defaults’

Jasmine Urquhart
clock • 3 min read
Employers have raised concerns about outcomes and administration following the 'pot for life' proposals
Image:

Employers have raised concerns about outcomes and administration following the 'pot for life' proposals

The lifetime provider model risks “throwing away” the gains of automatic enrolment (AE) and could put poorer savers at risk of lower outcomes, a report from the Association of British Insurers (ABI) has found.

The report, produced with WPI Economics, concluded that if plans for a ‘pot for life' went ahead, savers with smaller pots could lose out from remaining in "lower performing defaults". The model...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Join now

 

Already a Professional Pensions
member?

Login

More on Defined Contribution

PensionBee launches in US

PensionBee launches in US

US subsidiary PensionBee Inc to offer IRA consolidation and investment portfolios

Jasmine Urquhart
clock 18 July 2024 • 2 min read
CDC benefits may be 50% greater than those offered by DC, says LCP

CDC benefits may be 50% greater than those offered by DC, says LCP

Consultancy says multi-employer CDC schemes could come to market from 2026

Martin Richmond
clock 16 July 2024 • 3 min read
LifeSight reaches £20bn in assets under management

LifeSight reaches £20bn in assets under management

WTW DC master trust says number of scheme members it manages has surpassed 400,000

Martin Richmond
clock 11 July 2024 • 1 min read
Trustpilot