Philp said it was “very difficult” to build a default retirement income solution within a defined contribution framework, but maintained that “we do need a default to make sure people aren’t doing things like taking their tax-free cash and putting the rest into a cash Isa”.
“Something ‘default-like’ for those that don’t take active decisions is probably a better protection than doing nothing at all,” Harrington-Clark added.
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“If someone does nothing, we need something good to happen to them when they don’t take a choice.”
Pensions minister Guy Opperman has previously referred to plans to consult on decumulation options this year.
Nick Reeve is a freelance reporter for FTAdviser's sister publication Pensions Expert
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