DWP consultation on Helping savers understand their pension choices - Which? response

Summary:

• We support DWP’s proposal to place a duty on occupational pension schemes to provide decumulation services to their members. 
• We agree that schemes should be required to have a default decumulation service in place, which we think should seek to provide most members with a sustainable and flexible income in retirement.
• DWP should introduce a charge cap on these default decumulation services to protect savers from very high costs and charges on their pensions.
• DWP should not require schemes to offer their members a Collective Defined Contribution (CDC) solution at this time. 
• We support proposals for partnering arrangements to help smaller schemes deliver on these proposals, as well as requiring schemes to also consider consolidation to improve member outcomes.
• DWP must extend its proposed value for money framework to include defined contribution (DC) pensions in decumulation. 
• We support Nest directly offering their members a range of decumulation products and services.