UK Plans Default Pension Income Option for Private Savers
The UK Government has proposed Guided Retirement, a scheme that would require pension providers to offer private-sector savers a default income option in retirement.
The UK Government proposed Guided Retirement. It would make pension firms offer an income option.
The income could last all through retirement. It could rise with inflation.
Savers could still take out their money. They could also choose another investment.
The plan could affect about 17 million people. They save in default pension plans.
The plan follows concerns about pension savings. Some people use the money too quickly.
The Government said 46% of first pension withdrawals used the whole pot. This was in 2025–26.
Pensions minister Torsten Bell said the plan would offer lasting income. It could also help with rising living costs.
Steve Webb welcomed help for people with defined-contribution pensions. But he warned that savers should keep choice and control.
Section: Business
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