UK - The government must get on the offensive if they are to halt the decline of workplace pensions, according to the National Association of Pension Funds (NAPF).
In a new report, Making Pensions Work at Work, the NAPF has identified four key issues that urgently need to be addressed. They come in the wake of pension minister Stephen Timms’ call for the NAPF to “bang the drum” on workplace pensions.
The report calls for the work and pensions select committee to investigate when the schemes could be allowed to modify their existing liabilities to help employers retain their DB schemes.
NAPF chief executive, Christine Farnish, said: “Pensions work best when they are provided through the workplace. That’s why we are setting out the steps that need to be taken to make pensions work.”
With 43% of private sector defined benefit schemes still open, the report highlights the fact that schemes point to increasing risk and costs as their major challenges over the next few years.
“Taken together with an adequate state pension that takes people off means-tested benefits, the agenda for workplace pensions that we are setting out today will go a long way towards tackling the UK chronic problem of undersaving,” Farnish concluded.
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