A policy briefing setting out the details and implications of
the Government's widely-publicised pensions reforms announced in
Freedom of choice and the "right to guidance"
As part of his 2014 Budget statement, the Chancellor
announced major reforms to the decumulation market.
These reforms are aimed at enhancing customer choices at
the point of retirement, and assisting customers in making those
choices. They come as part of a wider package encouraging
The Chancellor's speech and a detailed Treasury
consultation set out:
- reforms to the taxation rules so that all consumers are
offered the full range of options at the point of retirement (lump
sum, drawdown or annuity) regardless of the size of their
- an interim step of easing the trivial commutation and
other limits to improve flexibility; and
- "the right to guidance": offering to all consumers
retiring with DC a pension at-retirement guidance that is
impartial, face-to-face and free at point of use.
This announcement was part of a package of measures around
the Chancellor's savings agenda, which included reforms to
individual savings accounts (ISA) limits and changes to national
savings and pension bonds.
The Treasury has published a consultation alongside the
Budget statement, setting out the Government's thinking in this
area in more detail. Responses are due by 11 June.
View the attached document »
CII Policy Briefing: Budget
2014 (March 2014)
CII/PFS Policy Briefing: FCA
thematic review on retirement income products (February
Consumer Research on the Retail Distribution Review (February
Tax tables: Budget 2014
Tax data: Budget 2014