UK - All members should "share the pain" when a scheme is put into wind-up, urges Hewitt Bacon & Woodrow in its green paper wish list.
Principal consultant Michael Pomery said that the current system is unfair because pensioners are top of the payments priority list when a scheme is wound up.
This often means that there is not enough money left to provide “anything like enough” for current workers, especially those near retirement.
Hewitt also believes that the green paper, which is due to be released on December 17, should include:
- More flexibility around retirement – i.e. allowing people to draw a partial pension while also continuing to work on a part-time basis.
- The end of contracting-out.
- A decent basic state pension and a plan to phase out means testing, which Hewitt believes can be paid for by raising the state pension age – but only for those currently under the age of 40.
- Better education for consumers about savings, risk and retirement planning.
Pomery added: “The time has come for the government to give a clear lead.
“This is a key issue with far reaching effects, more consultation and more delay will only serve to erode confidence further.”
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