CPS paper proposes two-part 'auto-protection' policy

The paper, written by Michael Johnson (pictured), said the ‘auto-protection' proposals outlined would help substantially to reduce exposure to financial risks in later life. Two distinct components would make up ‘auto-protection' - ‘auto-drawdown' and ‘auto-annuitisation'. According to the paper, ‘auto-drawdown' would occur at private pension age - which Johnson said he'd like increased to 60 - in the form of an income drawdown default of between 4% and 6% of pot assets per annum. ‘Auto-annuitisation' of residual pots would then occur at the age of 80. The paper said this would facili...