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Pensions Bill

Clause 7 is essential to the reforms, as it enables jobholders to opt out. We are keen to ensure that jobholders are aware of the effect of opting out before they take such a step. An individual cannot opt out of pension saving until they are in pension saving in the first place. People’s circumstances change. The opt-out decision must be a considered one. We do not want people to rush for the exit just because pension saving might be new for them or because they have at some time in the past made a decision not to save for a pension. I am concerned that the amendment would subvert the reforms. It would encourage premature and hasty decisions and increase the risk of employer coercion. It would allow a jobholder effectively to halt any attempts to enrol them into pension saving, and they would thereby lose the benefit of an employer contribution. We recognise that individuals will need access to relevant and accurate information when they are auto-enrolled, as in any other circumstances when they are making decisions about their retirement, and Clause 9 reflects that. However, we must avoid subverting the central objective of the reforms. I hope that the noble Lord understands why I am unable to accept the amendment. I urge him to withdraw it.