The UK government has set out plans to give private sector workers a default pension option intended to provide an income throughout retirement, similar to benefits often associated with public sector schemes. The Department for Work and Pensions said around 17 million private sector workers now saving into a pension would be offered the choice under the proposals, published on 3 November 2026.

The measure, called Guided Retirement, would require pension schemes to provide a default pension for savers approaching retirement. The government also published its response to a policy consultation on Retirement Collective Pension Schemes (RCPS), alongside draft regulations allowing providers to offer them as a default pension. Under the plans, RCPS would pool risk among members. Savers who prefer another option would remain free to choose it.

Two consultations were announced by Minister for Pensions Torsten Bell: one on Guided Retirement, published jointly with the Financial Conduct Authority and the Pensions Regulator, and one on the RCPS draft regulations. The Guided Retirement consultation is set to run from 3 November to 22 December 2026. The government cited figures showing around 46% of first-time pension pot accesses in 2025/26 involved the pot being fully withdrawn.