UK - Restoring confidence in the pensions industry must start with changes to the state system, a report by the Pensions Policy Institute claims.
PPI director Alison O’Connell said private pensions could not flourish unless they were built on a “secure foundation”.
PPI’s ‘A Guide to State Pension Reform’ reiterates calls from key industry figures who previously told the government that it must revamp the state pension system as part of its pensions reform.
The comments mirrored those by industry heavyweights such as Society of Pension Consultants president Donald Duval and former NAPF chairman Peter Thompson, made in response to the department for work and pensions’ Green Paper.
Liberal Democrat pensions spokesman Steve Webb said the government would be building on a “sinking foundation” if it ignored the state system in its pension reforms.
“The state pension needs to form a solid bedrock of income in retirement, and I welcome the PPI’s attempt to push the issue back on to the agenda,” he said.
Conservative pensions spokesman David Willetts added that the consensus on reform of the state system now included almost everyone except the government.
“Ministers are imposing new policies on the industry, but they won’t tackle the problem in their own back yard.”
The Department for Work and Pensions (DWP) has launched a website dedicated to signposting people to where they can receive guidance typically associated with a so-called 'mid-life MOT'.
This week's edition of Professional Pensions is out now.
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