Updated: The latest pension updates from the Autumn Statement 2023

Chancellor, Jeremy Hunt, has provided further updates on a number of pension reforms and initiatives as part of his Autumn Statement 2023, including launching a call for evidence on the potential for a new ‘pot for life’ model.

Industry experts were hopeful that the statement would include a number of key updates after expressing disappointment that the King's Speech failed to make any mention of pensions.

The Autumn Statement 2023 measures include:

- Plans for a call for evidence on a ‘pot for life’ model, although industry experts have raised concerns over the potential impact on both employers and employees - read more here.

- Next steps on the government's plans to introduce the multiple default consolidator model for defined contribution (DC) schemes, to enable a small number of authorised schemes to act as a consolidator for eligible pension pots under £1,000 - read more here.

- A consultation on changes to rules around DB pension scheme surpluses that aim to help well-funded schemes invest in assets with higher returns - read more here.

- Plans to introduce a March 2025 pooling deadline for Local Government Pension Schemes (LGPS) - read more here.

- Confirmation that the government will stand by the state pension triple lock in full, with pensioners to receive an 8.5 per cent increase from April 2024 - read more here.

- Plans to explore how the Pension Protection Fund (PPF) could act as a defined benefit (DB) consolidator, with a consultation expected in "winter" - read more here.

- A review of the current master trust market, five years on since the introduction of the 2018 Master Trust regulations.

- Updates on the joint Value for Money framework and the next steps on putting this into practice in the DC market.

- Confirmation that the removal of the lifetime allowance (LTA) is on track for 6 April, and reassurance that the changes will not require income tax to be payable on inherited pensions where the person dies before age 75.

- Plans to develop a register of trustees, to allow The Pensions Regulator (TPR) to target those trustees and schemes who require additional support to fulfil their obligations.

This also comes hot on the heels of yesterday's (21 November) news on the next steps for the Mansion House reforms, after the Chancellor announced a £320m plan designed to drive innovation and unlock the first tranche of investment from his Mansion House Reforms.

In response to Hunt's announcements, Labour Shadow Chancellor, Rachel Reeves, said: "The Chancellor today is talking about unlocking capital by reforming pensions but Labour would go further, encouraging investment into British start-up firms and scale-up firms and introducing measures to ensure the consolidation of pension funds, so that our pension system gets better returns for savers and for the UK economy."

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