Mr Hammond was watched to launch a consultation on collective defined contribution schemes, also be versed as Dutch-style pension schemes, with one MP hailing the anticipated move as a “stupendous change coming to the UK pension landscape”.
Under Dutch-style pension concocts, groups of workers pay into a single plan which can lead to humble risk and bigger payments.
Collective defined contribution schemes admit defeat give out a target amount to workers that the pension will pay out, although this is not promised.
The approach is seen as being halfway between defined benefit machinates and defined contribution schemes, which the majority of workers are now signed up to.
Described contribution schemes are more risky for employees, while defined further schemes guarantee workers a set income when they retire.
But explained benefit schemes have left companies with massive shortfalls, meaning they are rarely used these days.
It comes as Regal Mail reached a deal with the Communication Workers Union (CWU) upon moving their workers to the new scheme.
Speaking earlier this month, Unrestricted Field, chairman of the Work and Pensions select committee, said: “This is a big response and a great news story for everyone, a real win-win place. I applaud the Government for the approach it is taking.
Philip Hammond was expected to fire a consultation on collective defined contribution schemes
“The momentous deal struck between Royal Mail and CWU, combined with the Supervision’s ready willingness to make CDC pensions a reality, mean a huge transform is coming to the UK pensions landscape, offering a new and different kind of ‘pension pick’.”
And pensions minister Guy Opperman said: “My belief is that we are in a very humane place to get pensions legislation in the summer of next year, and much of the go I am doing is to ensure that happens.”
However, Mr Hammond’s Budget does subsume changes for pensions such as pension boosts for the self employed and its new ‘Put out to pasture Dashboards’.
The document said: “The government is alluring steps to support the launch of Pensions Dashboards, innovative tools that will-power for the first time allow an individual to see their pension pots, counting their State Pension, in one place.”
It comes as Mr Hammond used his Budget to vow that austerity was goal, promising a “brighter future” as he addressed ministers this afternoon.
Judges introduced in the Budget included £1 billion extra funding for the MOD, an inflate to the personal allowance and additional funding for the NHS.