Recent research published by the Department for Work and Pensions shows that many defined contribution (DC) savers are struggling to prepare for retirement. Once the relevant parts of the Pension Schemes Bill come into force, trustees will be required to design and implement one or more default retirement options for members (referred to as “guided retirement”). Patrick Coyne, while interim director of policy and public affairs at The Pensions Regulator, said that “trustees must rethink their role, not just as stewards of assets, but as enablers of good retirement outcomes. Generic solutions will not cut it. Trustees must consider how different defaults will suit different types of savers. And bring forward plans for simple but tailored support, smarter decumulation strategies, and clearer guidance.”
Pensions partner Wendy Hunter was delighted to be a guest speaker to discuss guided retirement as part of WTW’s Pensions Perspectives series of podcasts. You can watch the podcast on WTW’s YouTube channel.
