UK - Pensioners are destined to live in poverty unless the government takes "drastic action" to rebuild confidence in funded pensions, Tories warn.
Conservative work and pensions spokesman David Willetts told the Claybrook Pensions Software Forum the only way to redress the current situation was to tackle the onerous burden of regulation and the “continued confusion” surrounding means-testing.
Willetts added: “Looking at current forecasts, it is impossible for future retirees to live on the pensions presently being provided.
“Unless we take action to rebuild our funded pension saving, there will be enormous pressure for higher state benefits for pensioners. We need to encourage people to save more or to recognise that public expenditure plans are pie in the sky.”
The UK must do more to address its ageing demographics, says Mercer, as its global pension index shows the country static in its rankings.
Retirees could benefit from more sustainable income and higher death benefits by including guaranteed income in the asset mix of their portfolios at retirement, according to research by Milliman.
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