DWP is considering new legislation for provider marketing comms under the new targeted support framework.
The Department for Work and Pensions may relax marketing rules for pension providers, it has been reported. The DWP is considering new legislation for provider marketing comms under the new targeted support framework.
CityWire reports, as it stands, pension providers are unable to send clients marketing material unless they have opted in to receive them. Butthe DWP is considering bringing forward legislation in the Pensions Bill which would allow for an opt-out option for customers.
It means people with pension pots would have to explicitly opt-out of communications. A spokesperson for the DWP said it does not comment on speculation.
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In a statement to CityWire, the DWP said: “Our Pension Schemes Bill will help over 15 million people, including by bringing savers’ pension pots together in one place which could boost pension pots by £11,000, while our pensions dashboard programme will empower individuals to better prepare for retirement.”
It comes days after the government’s reforms to combine small pension pots to make working people better off as part of Plan for Change. The move is set to boost retirement savings for the average worker by around £1000 and save businesses £225 million a year in unnecessary admin costs.
It comes as part of Pension Schemes Bill which will drive investment in pensions industry and deliver on the government’s growth mission.
Labour Party Minister for Pensions Torsten Bell said: “ It’s great news that more people are saving for their retirement. But I want to make pension saving as simple and rewarding as possible.
“There are now more small pension pots in the UK than pensioners – raising costs and hassle for workers trying to track their savings. It also costs the pensions industry hundreds of millions of pounds every year.
“We will automatically bring together people’s small pots into one high performing pension, reducing costs as well as hassle for savers. In time this could boost the pension of an average earner by around £1,000 as part of our Plan for Change to put more money in people’s pockets.”
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