UK - Government attempts to bolster confidence in the security of pensions will evaporate overnight unless it guarantees protection, a consultant warns.
Mellon Human Resources & Investor Solutions is also concerned that many people now “erroneously” believe that their pensions are fully protected by the various government schemes.
Head of technical services Kevin LeGrand said that while the Pensions Protection Fund had raised confidence among members, it needed government backing to meet public expectations.
He said: “Any confidence in the security of pensions that these schemes might build in the minds of members is in danger of evaporating overnight in the event of just one more major scheme failure which results in members suffering serious pensions losses.”
He added: “In this event the PPF would itself become insolvent, and therefore the government should be seen to stand behind the fund to ensure affected members will not have their benefits cut back.”
Industry experts are calling on the government to act quickly on new pensions dashboard legislation. The DWP is looking at how to do it amid Brexit constraints, writes Kim Kaveh.
An interactive and hands-free technology that allows savers to track how much they have invested into their retirement pots has been launched by Smart Pension.
The Lighthouse Pensions Trust has recorded an 84% surge in the number of employers signed up to its auto-enrolment (AE) provision.
Melrose Industries's UK defined benefit (DB) schemes had a £5.5m combined deficit at the end of 2016, its annual results have revealed.