PMI has expressed concern that the current consultation on changes to the UK pension system is untimely and not well-considered.
It highlights the significance of well-considered adjustments based on outcomes and system efficiency, even though it generally favours reforms to improve member outcomes and system efficiency.
In addition to urging the government to be more transparent about its goals and strategies, PMI suggests that extensive planning be done before making major changes, including the proposed Lifetime Provider system.
PMI policy and public affairs committee chair and PMI advisory council member Tim Box says: “We are concerned that this is the wrong consultation at the wrong time. While we generally support consideration of changes to the UK pension system that improve member outcomes and the overall efficiency and functioning of the system, we believe that any changes as fundamental as these need to be properly thought through, based on evidence and the development of consensus.
“The Government needs to explain more fully what it is trying to achieve and provide more detail about how it intends to do this. There may be some merit in considering how a Lifetime Provider system could help connect people with their pensions and provide better outcomes but there are many policy initiatives already in various stages of development which could also achieve these goals.
“We urge the Government to spend the time building the evidence base that Lifetime Providers will improve retirement outcomes for the majority of members and gain consensus about this before jumping into wholesale change of the pensions system.”
