The Centre for Policy Studies' (CPS) new 'auto-protection' paper suggests retirees should be automatically enrolled into drawdown at private pension age and then, at 80, residual pots should be automatically annuitised.
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...
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