Shadow pensions minister calls for transparency
Pension reform must keep its focus on consumer welfare, the shadow pensions minister has claimed.
Speaking at an International Longevity Centre retirement income summit in London, Labour MP Gregg McClymont said while he welcomed the focus from the government on reforming the state pension and defined benefit schemes, he claimed more must be done on transparency.
He said that while education was important, there must be more focus on potential consumer detriment and suggested an aggregator to provide information on pension switching.
He said: “Annuity purchase is a one shot game. There are more limits for learning. A lack of standardisation around disclosure makes it harder to compare.”
Steve Groves, chief executive of Partnership, also speaking at the event, suggested the creation of a “safe harbour annuity.”
He said: “We are happy to auto-enrol into a default fund, so it would be good if we could do the same in the decumulation phase. It is no riskier than what is already going on.”
The ILC has been lobbying government and regulators for more support for savers with small pension pots.