Government control of pension pots

Lorian

Lots of headlines today (and paywalled stories) about the government 'grabbing control of our pension schemes'

If true how will these powers affect the average person in a company DC scheme, will it affect existing contributions or just future ones?

Are we exempt from any powers if we've opted in to something other than the default company schemes, for example investments with lesser or greater risk tolerance than the default?

Let's not stray in to politics this is purely a pension planning question.

Marcon

Don't believe all you read, especially when so much of it is written by people who don't know what they're writing about.

dunstonh

If true how will these powers affect the average person in a company DC scheme, will it affect existing contributions or just future ones?

It is only impacting occupational pensions and only in the default option (note that some master trust schemes only have a single option). It has no impact on individual schemes or where you can self select funds/investments away from the default.

The media is going a bit over the top with this. It makes for a lovely scaremongering headline, but when you read the detail, as it only affects the default fund, then it's not really an issue. Technically, it's a bit of a power grab by this government but the ability to switch out with the vast majority of schemes means it's a bit of a non-issue for those that care about it.

Mutton_Geoff

Story here - https://www.express.co.uk/finance/personalfinance/2195151/rachel-reeves-just-seized-control-your-pension-gambling-with-retirement

booneruk

Honestly people, everything is a "pension raid" with the Telegraph, Mail and the Express. Seek more balance in your reading.

I've selected my own funds on my workplace DC platform, so not going to be affected.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81966712#Comment_81966712

Trigger warning please, almost made me look at the Daily Execrable.

Lorian

https://forums.moneysavingexpert.com/discussion/comment/81966716#Comment_81966716

That's why I asked here I couldn't find anything not paywalled. Thanks I think.

Lorian

@dunstonh if someone would have been put in the 'standard scheme,' but instead selected the 'agressive' option, a higher risk selection but still not self selected. Would that exempt them?

Also I think there may be something about scheme value and small schemes might having to be amalgamated or some such?

booneruk

https://forums.moneysavingexpert.com/discussion/comment/81966759#Comment_81966759

I've just searched google news and other aggregators for the same story. It seems only the usual suspects are taking the opportunity to shout about raids and grabs (DM, GB News, Express, Telegraph).

Anyway, I guess an upside of all of this could be people taking more interest in where their DC pots are invested. Default funds are arguably not adventurous enough for those starting young.

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/81966762#Comment_81966762

That could fall under scope depending on the provider. i.e. if the provider has say 5 different risk levels of an in-house pathway style fund then they may make the choice to align all five.

Marcon

Also I think there may be something about scheme value and small schemes might having to be amalgamated or some such?

Could you be more precise please?