Kate Smith, Head of Pensions at Aegon comments on the Work and Pension Select Committee third and final inquiry into Protecting pension savers – five years on from the pension freedoms: Saving for later life. The deadline for written evidence is 2 February 2022.
“The Work and Pensions Select Committee has published its third and final inquiry looking at the impact of the pension freedoms five years on, this time focusing on ‘Saving for later life’. This is a wide-ranging inquiry looking at retirement income adequacy and how best savers can be supported to help the employed and self-employed save for retirement, including improvements to auto-enrolment, greater advice and guidance and closing the gender pension gap.
“There’s an increasing concern that people aren’t saving enough for retirement and without greater support or intervention, too many will be heading towards poverty in retirement. Pensions are closely linked with the world of work. Work patterns have changed dramatically since the advent of auto-enrolment in 2012, with a growth in part-time working, self-employment and gig-workers, while the pensions gender gap is at risk of widening due the direct impact of Covid. Auto-enrolment and saving for later life needs to be fit for today’s working practices and preferences. To start with, the government must implement the 2017 review of auto-enrolment recommendations at the earliest opportunity, and then look at the best way to nudge UK workers into saving more to secure their financial futures.”