ACA responds to DWP consultation on 'Pot for Life' proposals

Article summary

The Association of Consulting Actuaries (ACA) has published its response to the Department for Work and Pensions consultation 'Looking to the future: greater member security and rebalancing risk', raising its doubts about the timing and desirability of the 'Pot for Life' proposals in the consultation. ACA states that it is concerned the new infrastructure required across multiple areas for the 'Pot for Life' will be significant and could be a distraction from other current pensions initiatives. The response also highlights concern that a move away from employer sponsored arrangements will 'reduce employers' engagement with retirement saving'. ACA additionally states it is concerned that people may select their pension pots 'based on familiarity or using a purely price or short-term performance lens, without thinking more holistically about future outcomes'.