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Autumn Statement brings multiple pensions reforms

In accordance with industry speculation, the Chancellor has made a number of announcements in relation to pensions in today's Autumn Statement. Click here to find the government summary. Spoilt for choice, Pensions Barrister's eye is on the following announcement:

"launching a call for evidence for DC schemes on a lifetime provider model to simplify the pensions market by allowing individuals to move towards having one pension pot for life, and on a potential expanded role for Collective DC (CDC) schemes in future"

The so-called "pot for life" proposals, that would require employers to permit staff to direct contributions into their own personal pension scheme as a method of satisfying auto-enrolment requirements, have obvious pros and cons. On the one hand, employers will be able to offer members alternatives, without concern about breaching prohibitions on incentives. On the other hand, how will employers be sure that the member has taken adequate financial advice? SIPPs in particular have been associated, on occasion, with liberation, misselling and heavy losses. It will be interesting to see how the proposal develops...

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