Auto-enrolment inquiry: Pensions Minister to be quizzed

The Pensions Minister is set to be grilled by MPs in Parliament on Monday as part of an ongoing inquiry into the progress made with automatic enrolment. The Work and Pensions Select Committee will be quizzing Steve Webb MP from 4.30pm at Portcullis House.The final evidence session with Mr Webb is intended to explore the wide range of issues covered in the inquiry including lessons learned from the experience of auto-enrolment to date.It will look at the challenges of rolling out auto-enrolment to smaller employersand how these might be addressed, as well as progress made to ensure savers are enrolled in appropriate, well-governed schemes, offering good value for money and low charges.The impact on pension schemes of the new pension flexibilities will be another topic, along with the new guidance service and the possible need for additional protection, including default decumulation options.{desktop}{/desktop}{mobile}{/mobile}The regulatory framework will also be discussed. The review of auto-enrolment will include assessing the development of future pension policy.The committee said: "This inquiry is assessing progress with auto-enrolment in workplace pensions, taking account of the changed context arising from Government proposals for changing pension taxation arrangements, and introducing shared risk and collective pension schemes."Meanwhile, a pensions expert is hoping auto-enrolment will improve the prospects of many retirees after just 12% of over-40s told a survey that they would survive on the new State Pension of around £8,000 per year.Some 37% of 40 to 50 year olds said they would look for part-time work to increase their income. This fell to 26% for 66 to 70 year olds.Just 13% of 66 to 70 year olds – potentially the age group which understands the financial implications of retirement the most – said they could survive on the new State Pension of approximately £8,000.Andrew Megson, Partnership's managing director of retirement, said: "With the cost of living increasing and people struggling to reach common financial milestones such as purchasing a property, it is easy to understand how some reach retirement with little in the way of pension savings. This should improve with the advent of automatic enrolment but people do need to consider carefully just how much income they need to enjoy their retirement."

Auto-enrolment inquiry: Pensions Minister to be quizzed

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