Meanwhile, the Pensions and Lifetime Savings Association (PLSA) has called for a new regulatory framework to allow pension schemes to better support savers when they are choosing how to access their pension.
In particular, the PLSA said the framework should introduce a statutory requirement for schemes to help manage some of the risks savers are facing while also looking to provide support, especially to savers who do not engage with their pensions.
Schemes should also have an input in any future product development in order to manage risks for savers as more people increasingly rely on defined contribution pots for retirement, it said.
The framework should also set out minimum standards for schemes to follow when communicating and engaging with members.
Emma Douglas, chairwoman of the PLSA policy board, said: “The pension freedoms radically revised the journey for savers when they reached retirement, bringing new opportunities, challenges and risks to savers and pension schemes.
“The decumulation framework we are recommending today responds to the evolution of the pension system.
“It will provide vital support to savers and help bridge the gap between the inertia which makes automatic enrolment such a success, and the range of choices (which can be confusing) savers face when electing how to draw their pension at retirement.”
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