The Times quotes Emily Campbell on the Chancellor’s ‘pot for life’ reforms
In the Autumn statement, Chancellor Jeremy Hunt announced plans to launch "one pension pot for life".
This measure proposes that a member of an AE scheme would have the right to choose which scheme pension contributions will be made to instead of auto-enrolling into the employer’s scheme.
"The Chancellor’s ‘pot for life’ reforms are likely to be popular amongst members, who will feel they have more control and oversight of their savings. The reforms also provide advantages to employers, who will be able to offer choice to members without fear of possibly falling foul of auto-enrolment rules banning incentives for auto-enrolment opt-out.
"At the same time, the proposals show that the Pensions Dashboards Programme may not have been sufficient in dealing with the problem of small pots. Further, one wonders how employers can be sure that members will have taken appropriate financial advice – especially given the types of free investment choices offered by SIPPs, which sometimes lead to heavy losses and complaints of misselling."