UK - Industrywide schemes must be encouraged by the government if it is to develop a fair, cost-effective and sustainable pensions system, the Consumers' Association claims.
The association believes that the current mix of state, private and occupational provision is a “mess” and that a radical overhaul is needed. As a start, the CA believes that the personal pensions market must be rationalised, and that until it does so, it will not be efficient.
The association argues this situation has allowed weak corporate governance, integrity and accountability to flourish in the sector, as firms put shareholders’ interests above customers.
To replace the vast array of pension providers, the CA argues that the government should encourage the development of industrywide schemes based on the Dutch model or the UK-based B&CE Benefit stakeholder scheme.
These will provide the economies of scale and “financial muscle” to deliver pensions cost-effectively, the CA argues. CA principal policy adviser Mick McAteer said: “Government has a duty to make the City work in the national economic interest.”
Businesses are experiencing auto-enrolment data error rates of up to 50%, posing questions over the reliability of pension records, Pensionsync says.
A nationwide survey of committee and local pension board members of the Local Government Pension Scheme has revealed high levels of confidence in all areas of their responsibility.
UK inflation unexpectedly rose to 2.7% in August, beating analysts' expectations of a drop to 2.4% from 2.5% the previous month.