Defined ambition proposals could open the door to more flexible drawdown as master trusts provide both accumulation and decumulation vehicles, The Pensions Regulator says.
The Department for Work and Pensions (DWP) published its long-awaited defined ambition (DA) paper earlier this month - setting out three proposals for new structures for schemes; including ‘flexible defined benefit' (DB), guaranteed defined contribution (DC), and collective DC options (PP Online, 7 November).
Speaking at the Workplace Savings and Benefits Pensions Summit today, The Pensions Regulator executive director for defined contribution, governance and administration Andrew Warwick-Thompson said such flexible structures could open up flexible drawdown to a much larger number of people.
He said: "One thing that might emerge from DA is to test the appetite for master trusts to move into flexible drawdown - both accumulating and decumulating in the master trust."
Warwick-Thompson added: "This would open up the undoubted advantages of flexible drawdown to a wider audience."
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