Jessica List, Pensions Technical Manager at Curtis Banks, comments on the latest House of Commons Work and Pensions Committee Report on Pensions Freedoms.
“The Government appears strongly opposed to the idea of having savers automatically booked into Pension Wise appointments, going as far as rejecting even a trial of the proposal. In its original report, the Work and Pensions Committee argued that a trial would be useful to test the reservations that had been expressed about the proposals, but it seems the Government does not agree.
“It will be interesting to see whether the stronger nudges rules that are due to take effect in June achieve a significant increase in Pension Wise take up; and if not, whether the idea of automatic appointments will be revisited further down the line.
On perhaps a more positive note, it is reassuring to see the Government’s response to the recommendation to explore tax free cash ‘decoupling’, which reiterates the extent of the legislative changes that would be needed to achieve it, the potential for ongoing complexity, and the strong possibility of unintended consequences undermining the purpose of the proposal.
“Again, it will be interesting to see if this idea continues to be discussed if other proposals for improving savers’ understanding and outcomes are not as effective as hoped.”
