UK consults on default retirement income options for private-sector pensions

Economy · First reported 3 Nov, 12:32 · Updated 12:49

Image: Wikimedia Commons · NASA/USGS · Public domain

The Government is consulting on requiring pension schemes to offer a default option to savers approaching retirement, intended to help turn savings into income. Savers would remain free to choose another option.

The consultation considers how pension schemes should provide default options for members nearing retirement.
The Government says the approach could offer a stable retirement income and help reduce the risk of savers running down their pots too quickly.
Savers would still be able to choose a different option; consultees also raised the importance of flexibility and tailored support.

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Key facts

Policy: Consultation on guided retirement and default pensions for savers approaching retirement.
Choice: The Government says savers who want another option will remain free to choose it.
First-time pot accesses: About 46% in 2025–26 involved the pot being fully withdrawn, according to the Government.
Workplace pension saving: About nine in 10 eligible private-sector workers are now saving, up from four in 10 in 2012.