It is critical guidance guarantee take up rates increase in its first five years of operation as the proportion of retirees solely relying on defined contribution (DC) pensions grows, Michelle Cracknell has said.
Speaking to a panel of MPs, the chief executive of The Pensions Advisory Service (TPAS) said take-up rates have been projected at 25% of all retirees when the service launches in April next year. This equates to about 100,000 people out of the 400,000 people who retire each year. However, Cracknell explained people retiring next year are not likely to be relying entirely on DC savings and therefore the guidance will have a lesser impact. She said from about 2020 onwards the number of pure DC pensioners would shoot up. "In the initial wave post-2015, for a lot of people the DC pe...
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