Lifetime provider model risks 'throwing away' AE gains, ABI says

Report says pot for life would leave those with smaller pots in ‘lower performing defaults’

Jasmine Urquhart
clock • 3 min read
Employers have raised concerns about outcomes and administration following the 'pot for life' proposals
Image:

Employers have raised concerns about outcomes and administration following the 'pot for life' proposals

The lifetime provider model risks “throwing away” the gains of automatic enrolment (AE) and could put poorer savers at risk of lower outcomes, a report from the Association of British Insurers (ABI) has found.

The report, produced with WPI Economics, concluded that if plans for a ‘pot for life' went ahead, savers with smaller pots could lose out from remaining in "lower performing defaults". The model...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Join now

 

Already a Professional Pensions
member?

Login

Jasmine Urquhart
Author spotlight

Jasmine Urquhart

Senior Correspondent at Professional Pensions

More on Defined Contribution

Major master trusts express concern over government's approach to DC consolidation

Major master trusts express concern over government's approach to DC consolidation

Smart Pension and SEI both raise concerns over chancellor’s plans and timelines

Jonathan Stapleton
clock 18 November 2024 • 5 min read
'Decisive action' needed to address £100,000 gender pensions gap

'Decisive action' needed to address £100,000 gender pensions gap

20th Scottish Widows ‘Women and Retirement report’ addresses progress on gender pensions gap

Jasmine Urquhart
clock 13 November 2024 • 4 min read
Pensions dashboards could lead to more than £2bn in lost savings by 2030

Pensions dashboards could lead to more than £2bn in lost savings by 2030

Research finds two-fifths of savers likely to use dashboards to carry out a pension transfer

Martin Richmond
clock 13 November 2024 • 3 min read
Trustpilot