Yesterday (July 11) saw the Department for Work and Pensions publish a raft of proposals for reforming pensions but FTAdviser readers expressed concerns.
For example responding to the news that the DWP intends to introduce a duty on trustees to consider the needs of their members when they want to access their pension pot, one reader said there were simply too many organisations involved in regulating pensions.
The announcement which had been trailed most were the government's plans to boost UK growth by encouraging pensions to invest in unlisted UK companies.
Some of the UK’s largest defined contribution pension schemes agreed to commit 5 per cent of their default funds to unlisted equities by 2030.
But one reader expressed concern about savers being forced to invest in such risky assets:
One of the other announcements was the government's plans to extend automatic enrolment.
Legislation will be introduced to remove the ‘lower earnings limit’ for minimum contributions and lower the minimum age at which someone qualifies for auto-enrolment to 18.
But one of our readers said this could lead to a proliferation of small pots and paperwork.
Finally, two of our readers discussed the effects of the DWP's plans to tackle the small pots issue through consolidation rather than through the 'pot follows member' approach and whether it would have any negative effects on the existing small pots process.
Let us know what you think in the comments below.
