Troy Clutterbuck, CEO of NOW: Pensions said: “While the government does not believe that default decumulation pathways are consistent with the freedom and choice reforms, they are entirely consistent with auto enrolment where savers often are unengaged and make no active decisions at all.
“Right now, this isn’t an issue for auto enrolled savers. Of the 4,331 NOW: Pensions members who took their retirement benefits during 2017, the average fund value was just £732 and virtually all took their entire fund as cash.
“Fast forward 10 or 15 years and the needs of these savers will change. There needs to be a twin track approach for engaged and disengaged savers with defaults available to those who have relied on our trustees to safeguard their interests throughout and want to continue to do so.”