Pensions minister Steve Webb says current at-retirement processes are outdated and asked whether we need to "do decumulation differently."
Speaking at the launch of the Scottish Widows UK Pensions Report Webb referred to decumulation as "a jigsaw we haven't given enough time to."
"Decumulation is something we have made progress on but there is a bigger debate to be had," he said. "Current decumulation practices are still based on the market of thirty years ago and we need to ask if we need to do decumulation differently."
Shadow pensions minister Gregg McClymont agreed the area needed renewed focus.
"Do we think the pensions market works effectively based on the idea of the informed consumer? In many cases no," he said. "How can we get to a point where this would happen? What would the informed consumer look like? Maybe we need to shift more towards the idea of good defaults rather than the idea of an informed consumer?"
TUC's assistant general secretary Kay Carberry said ways need to be found to help people make decent retirement decisions.
"We have to find a way to protect people from making the wrong decision," she said. "The ABI has a code of practice so if providers follow that then that will be a start. There's also good information available on the TPAS website but we need to find ways of drawing people's attention to it."
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