Reforms are required following the increased importance of defined contribution (DC) pensions and the rise in the level of wealth accumulated by DC savers, the Institute of Fiscal Studies (IFS) has said.
The think tank's report – Individuals' challenges managing pensions through retirement – published yesterday (1 April) in partnership with the Abrdn Financial Fairness Trust, revealed the share of retirees who will have to determine how to draw on their DC savings in retirement is set to "grow significantly". As such it said reforms will be necessary to help navigate the "complex" and "risky" decisions they will face in retirement. The IFS said: "Reforms are needed to make the system easier to navigate successfully in order to help reduce risk." The IFS found six in ten (59%) savers a...
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