UK - Concurrent industry reviews could create the potentially dangerous combination of a simpler but unfair pensions system, Scottish Life warns.
Hopes of radical reform have been boosted by the government's decision to bring together the simplification review led by former NAPF chairman Alan Pickering which is looking at rules governing private pension provision; Ron Sandler's review of personal pensions and savings products and the Inland Revenue review which is looking at pension tax laws.
But Scottish Life fears the result could make matters worse.
It says the pensions system penalises the majority of savers in order to stop a very small percentage of wealthy people – who have the means to invest more than the permitted amount in pensions – from over-using the tax reliefs on offer.
Scottish Life fears simplification of rules could still leave this unfairness in place.
Scottish Life head of pensions strategy Steve Bee says at the moment the system is complex but unfair.
He said: “Ideally, what is needed is a simple system that is also fair.
A fair system that is also complex would be an acceptable outcome but a simple system that remains unfair would not - in fact, it would be dangerous.”
By Jonathan Stapleton
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