IFS review expects forthcoming Pension Schemes Bill to mandate default retirement income soluti...
The Institute for Fiscal Studies (IFS) in partnership with the abrdn Financial Fairness Trust has released findings from their latest reports of the Pensions Review detailing expected reforms to be contained in the forthcoming Pension Schemes Bill. The IFS Pensions Review, as distinguished from the government’s review, is a 2½-year project to comprehensively assess the consequences of current pension policy, the economic environment and individual behaviour for the future of living standards in retirement. The IFS Pensions Review findings outline that legislation will require pension providers to implement default retirement income solutions, introducing a ‘flex then fix’ model where pensioners can draw down flexibly early in retirement before annuitising at age 75-80. The IFS Pensions Review notes that median defined contribution pension wealth is projected to increase from £75,000 for those born in the early 1960s to £130,000 for those born in the late 1970s, highlighting the growing importance of effective pension wealth management.