Guaranteed pension income ‘resurrected’ for 17m private sector workers
The government proposes new guided retirement schemes to protect savers' pensions for life, assisting 17 million workers without final salary benefits.
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Guaranteed pension income ‘resurrected’ for 17m private sector workers
Ministers introduce a new default option for retirees, ensuring their savings provide a life income.
- Under the guided retirement regime, individuals can access their funds or invest elsewhere, but a simple, inflation-linked payment option is also available.
- The proposal affects 17 million workers with personal pensions.
Savings have increased due to auto-enrolment, making 90% of eligible workers contribute to a retirement fund.
However, many retirees struggle with their pension choices, with nearly half of new pension pots accessed in 2025-26 completely emptied. This puts individuals at risk of outliving their savings and reliant on state pensions.
Pensions minister, Torsten Bell, stated:
"Private sector workers deserve a better deal. They save for retirement, but too many are left without a genuine pension."