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ABI warns UK lifetime provider 'pot for life' and member choice proposals could undercut auto-enrolment and increase employer and saver risks; DWP continues analysis

Published on: 09 April 2024

Published by a Law360 reporter
Legal News
Article summary

On 6 April 2024, the trade association warned that introducing so-called lifetime provider models risks undermining the progress already made since parliament brought in rules back in 2012 compelling employers to enrol staff automatically into workplace retirement savings schemes. In November 2023, the Department for Work and Pensions (DWP) proposed changes that would let employees keep paying into a single retirement pot, rather than automatically opening a new plan each time they switch jobs. Ministers have encountered resistance to these ideas and seem to have cooled their tone noticeably on the overall package. The proposals are intended to tackle the steadily growing number of small pension pots. Among them is a 'stapling' approach, also called pot for life, that would permit workers to remain in the first scheme they started contributing to at the outset of their careers...

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