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.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers