The government's latest Pensions Bill will be laid before parliament today but the timing for the introduction of defined ambition (DA) pensions couldn't be worse, Tom McPhail has said.
DA pensions will set between defined benefit (DB) and defined contribution (DC) schemes. DA schemes give savers and employers the opportunity to share the risk associated with workplace pensions. McPhail, Hargreaves Lansdown head of pensions research, said DA was a "moderately good idea" but was extremely badly timed. He said take up is expected to be extremely slow: "We have yet to come across a single employer who has confirmed that they definitely intend to introduce one of these new schemes for their employees." While demand for DA schemes, also known as collective defined cont...
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