UK - It is essential the new pension savings scheme proposed by government complement, rather than replace, the current pension provision, the NAPF has claimed.
The organisation made the call in response to a recent Barclays survey, which found 31% of UK SMEs believed the National Pension Saving Scheme (NPSS) changes would level down company pension schemes, with a further 18% thinking employers would close their schemes altogether.
NAPF CEO Joanne Segars welcomed the Personal Accounts initiative, which she said aimed to extend retirement saving to millions more workers, but added:
"To avoid the risk of levelling down, we believe the government should be actively encouraging employers who currently offer more than the minimum, to auto-enrol people into existing schemes on today’s terms.
"The new system should complement, rather than replace, current pension provision.”
To achieve this aim, the NAPF proposed that Personal Accounts be designed to meet the needs of the target group – those without access to a workplace pension.
The organisation also called for fiscal support for employers offering good schemes to meet the cost of enrolling all their employees at today’s high contribution level.
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