UK - Hewitt Bacon & Woodrow has attacked the government's "alarmingly complacent" attitude towards pension reform.
The consultant described the Green Paper as just an “initial step” and criticised the government for having too few concrete proposals.
Hewitt added that unless the government was prepared to “sit back and see benefits slashed when schemes go under”, it must set up a state-backed compensation system.
Senior pensions consultant Michael Pomery said: “The Green Paper contained little by way of concrete proposals and conveyed an alarmingly complacent attitude.
“There is wide agreement over the need for a real shake-up to address the fact that people are living longer without savings to support this.
“The government needs to consider whether it is prepared to see pension schemes fail and some members receiving very low benefits.
“If not, the only viable solution is for the State to act as guarantor to a statutory compensation scheme.”
Pomery explained that without a system where the government acts as guarantor, there would need to be much greater disclosure to scheme members about the true level of security of their benefits.
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