New Guaranteed Retirement Scheme Proposed For Private Sector Workers

Ministers plan to offer private sector workers a guaranteed lifetime income through a new retirement scheme.

Ministers propose a new guided retirement scheme to give millions of private sector workers a guaranteed income for life. The initiative aims to help savers manage their retirement pots after decades of final salary scheme closures. Schemes will be required to provide a default pension option for individuals approaching retirement.

• The targetMillions of private sector savers are affected by the proposed retirement rule changes.
• The backgroundMost final salary pension schemes providing set payouts have closed over the past 30 years.
• The requirementPension providers must offer a default pension to guide individuals reaching retirement age.

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