Are Pension Freedoms Safe?

LHW99

After the introduction of Pension Freedoms in 2015, many people have benefitted from the ability to choose how to drawdown their DC pensions.

The Freedoms have enabled those who have to retire early through ill-health or redundancy to use their fund to support early retirement, rather than relying on the state. It has enabled those with very small DB pensions to supplement their incomes flexibly in retirement, and has allowed those caught in the interest only mortgage pit to use their fund to support loan payments, giving time to plan downsizing or moving to a different cheaper part of the country, without worry.

The FCA seems to believe that stronger guidance, or new rules for accessing DC pots should be implemented, possibly reverting to something like the earlier "Capped Drawdown" requirements for a minimum retirement income. This, or a requirement for full independent (hence expensive) advice, would inevitably prevent a significant proportion of retirees from taking full advantage of the freedoms as they are now.

What plans do the parties have to review or change this aspect of retirement provision?