Julian Barker, head of policy collective defined contribution, costs and charges, and decumulation at the Department for Work and Pensions (DWP), has confirmed that the lifetime provider model is no longer at the top of the government’s agenda.
Asked whether it is fair to say that the lifetime provider model, or pot for life as it has also been known, is no longer on the top of the queue for the government at the Pensions and Lifetime Savings Association’s (PLSA) annual conference in Liverpool, Barker said: “I can give a very short answer – which is ‘yes’”.
The lifetime provider model was introduced last November by the then chancellor of the exchequer Jeremy Hunt in a bid to “simplify the pensions market”.
The pensions industry has been quite vocal over their concerns since the chancellor introduced these proposals even before the call for evidence was launched, with the industry initially saying the plans would need “careful consideration” as they risk undermining the current system.
Despite the numerous concerns raised by the industry since the model was announced, the DWP was still pushing on with the idea. When contacted by IPE in May, the DWP confirmed it was still “considering” the model.
When contacted by IPE this week, DWP said: “Our landmark pensions review will help to ensure the pensioners of tomorrow have the dignity and security they deserve in retirement.
“We will look at further steps to improve outcomes for people saving into their pensions while increasing investment in the UK later this year.”
Read the digital edition of IPE’s latest magazine
No comments yet