Personal Pensions

Department for Work and Pensions written question – answered on 27th May 2022.

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Photo of Matt Vickers Matt Vickers Conservative, Stockton South

To ask the Secretary of State for Work and Pensions, what steps she is taking to help people understand their personal pensions.

Photo of Guy Opperman Guy Opperman The Parliamentary Under-Secretary of State for Work and Pensions

The Department for Work and Pensions (DWP) is currently introducing several initiatives to assist people in understanding their pensions.

The Stronger Nudge to pensions guidance regulations, coming into force on 01 June 2022, ensure no-one will be able to access their savings through pension freedoms without having received Pension Wise guidance or opted out. As part of this, schemes will offer to book of a Pension Wise appointment for the member as part of the application process, removing the inertia introduced by members having to book their own appointment.

From October this year, new regulations come into force that require defined contribution schemes used for automatic enrolment to send simpler, 2-page maximum, statements to members. These short, simpler statements will give savers the key information they need to be able to better engage with and understand their pensions. They will help people plan for the retirement they want.

DWP published a consultation on the draft regulations for Pensions Dashboards, which closed on 13 March 2022. Following publication of its response, expected this summer, the department will lay regulations for dashboards when parliamentary time allows. Pensions dashboards can help make accessing pensions information easier by empowering people to see what they have in their various pensions, including their State Pension, at the touch of a button on their smartphone, laptop or computer at home. This will put the saver in control and help reconnect people with their lost pension pots, transforming how people think and plan for their retirement.

DWP regulates for trust-based workplace pensions. Individual and other personal pensions within the contract-based market are regulated by the Financial Conduct Authority.

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