Pensions Minister Steve Webb says he remains committed to defined ambition (DA) despite the Budget scrapping restrictions on how people take their pensions income at retirement.
Last month, Chancellor George Osborne said anyone over 55 would be able to take their entire pensions as cash from April 2015, subject to the marginal rate of income tax.
Shadow pensions minister Gregg McClymont challenged Webb's DA hopes in light of the Budget, questioning whether it could be successful considering its reliance on intergenerational risk sharing.
Speaking at the Baker Tilly pensions conference on Thursday, Webb reaffirmed his vision for DA, arguing savers would continue to value certainty in retirement.
He said there would still be demand for risk-pooling and risk-sharing and a need to "lock in more income every year you save".
Webb pointed to the benefits of the Dutch model and maintained that good employers would still want to offer their workforce more than the minimum defined contribution (DC) offering.
He said: "Consumers will still ask ‘how much will I get?' All too often we can't answer that question.
"There is still a need to lock in certainty with risk-sharing models. We haven't abolished pensions."
The minister also said the government would not put restrictions on transfers from defined benefit (DB) to DC schemes during the consultation period.
He added: "If we think flexibility is good, would we want to restrict it in DB?"
Webb revealed providers were discussing the possibility of introducing deferred annuities and said there had been "overstated reports of the death of annuities".
He added that he was nervous at the idea of providers delivering on the Budget's ‘guidance guarantee' amid concern they would push their own products.
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