UK - Scottish Equitable is urging the government to improve contracting-out rebates to give people a clear incentive to move away from the state pension scheme.
The insurer said the introduction of the state second pension in April had taken away the financial stimulus for people to contract-out and make their own pensions provision.
Its views echo the Pickering Report, which stated that current rebates give no additional incentive for people to contract-out.
Scottish Equitable pensions development director Stewart Ritchie said: “If the government is serious about contracting-out then it needs to do something urgently.
“If contracting-out effectively disappears, then it goes against the government’s policy of reducing the burden on the state by reversing the 60:40 balance of public/private pension provision.”
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