PMI response to DWP announcement on Guided Retirement and Retirement Collective Pension Schemes 

The Pensions Management Institute (PMI) welcomes the publication of the Government's proposals on Guided Retirement and Retirement Collective Pension Schemes, which aim to give defined contribution savers access to a more secure and sustainable retirement income.    

The reforms would provide workplace pension savers with a default retirement solution, while preserving individual choice for those who wish to pursue alternative options.    

Commenting on the announcement, Helen Forrest Hall, Chief Strategy Officer at the PMI, said: 

  "The Government's focus on helping defined contribution savers convert pension savings into a sustainable income throughout retirement is a positive and important development. As more people retire with DC pensions, there is a growing need for retirement solutions that are easier to navigate and provide greater certainty for members.  

 "We have consistently said that government must place simplicity, stability and savers at the heart of pensions policy. So we welcome the emphasis on default retirement pathways and the recognition that many savers would benefit from not being forced to make complex decisions at and throughout their retirement. Delivering good outcomes will depend on ensuring that schemes and providers can implement these changes in a practical, cost-effective and member-focused way.     

"As the consultation progresses, getting the governance framework right will be critical. Any default retirement solution must be underpinned by robust oversight, clear accountability, effective communication and strong protections for members. Equally important is providing trustees and providers with the certainty they need to make informed long-term decisions in members' best interests.   

"We look forward to engaging with the Government, regulators and industry stakeholders throughout the consultation process. The pensions industry has a vital role to play in ensuring that any new framework is both deliverable in practice and capable of providing the secure retirement outcomes that members deserve."