UK - David Willetts, the former shadow pensions minister, has slammed defined contribution (DC) schemes for leaving future retirees with inadequate retirement provision.
Speaking at a pensions conference in London, Willetts said a more flexible, less costly version of defined benefit (DB) schemes or a hybrid DB/DC scheme was desirable.
He added that in his opinion, the DC model was not a stable solution in its present form.
Speaking to Global Pensions, Willetts called on the government to make it easier for companies to put in place hybrid DB/DC plans to best serve retirees' interests, rather than placing the onus on the public.
He said: “I always thought the most interesting part of policy was the bit in between.”
He warned it was “difficult to imagine a long term stable future” with the pensions industry in its current state, and added that he could foresee a situation in which people would not be able to retire comfortably with a decent level of income, forcing them to continue working.
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
This week's top stories were the DWP giving the green light to CDC and TPR granting extensions for 11 master trust authorisation applications.
Susan Martin says building strong foundations for business are the only way forward as the pensions industry is radically shaken up
The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.