Protecting pension savers – five years on from the pension freedoms: Work and Pensions Committee to examine saving for later life

In the third and final part of its inquiry into the impact of the pension freedoms and the protection of savers, the Work and Pensions Committee is to examine what more needs to be done to help people plan and save for their retirement.

The inquiry will now focus on whether households have adequate pension saving for retirement and how the Government can improve outcomes for savers. It will examine issues around auto-enrolment, retirement income targets and guidance and advice and also look into the support available for the self-employed and gig economy workers. It will also look at possible measures to close the gender pensions gap.

Rt Hon Stephen Timms MP, Chair of the Work and Pensions Committee, said: “Making sure the right support and encouragement to save is in place from the very start of people’s working lives should be a key part of pensions policy if everyone is to benefit from a secure and comfortable retirement. Our inquiry will examine the impact on saving rates of both auto-enrolment and advice to savers and whether there are changes that could be made to boost the incomes of pensioners.

With a rising number of people in precarious forms of work, the inquiry will also look at how self-employed people and those in the gig economy can be helped to save for their pensions to ensure they do not miss out later on in life.”

The Committee’s inquiry on the pension freedoms, which were introduced in 2015 with the aim of giving people aged over 55 more control over how and when they could access their savings, has also examined pension scams and accessing pension savings. The report on pension scams was published in March, while the Committee is due to make recommendations in the new year on the options open to people when they come to access their pensions, as well as the advice and guidance which is available.

The Committee would like to hear views on the following questions.

1. Do households in the UK have adequate pension savings for retirement?
2. Are changes needed to auto-enrolment to provide an adequate level of pension savings for retirement?
3. What advice and guidance do people need when saving for retirement?
4. Could retirement income targets help savers plan for retirement?
5. Apart from increasing contributions, how can the Government improve outcomes for savers?
6. Can pension providers change the design of pension products to improve outcomes for savers?
7. What should the Government be doing to support self-employed people to save for retirement?
8. Are different or additional measures required to help gig economy workers save for retirement.
9. Are there measures which the Government should consider to close the gender pension gap?

We will be taking evidence through the early part of 2022. The deadline for written evidence isWednesday 2^nd February 2022. We’ll still be able to use evidence we receive after that date, but your evidence will be able to have more impact on our work if we receive it by the deadline.