UK - Pensions must be separated from politics if confidence in the savings industry is to be restored, Mellon Human Resources & Investor Solutions claims.
Mellon head of technical services Kevin LeGrand believes that conflicting short-term policies from both Labour and Conservative governments has undermined confidence in the industry, and that to rebuild it, responsibility for pensions policy must be taken out of their hands.
LeGrand said: “Pensions policy over the past decade has been characterised by short-term responses to symptoms, emanating from parties with conflicting perspectives.
“This has contributed strongly to the widespread decline in confidence. If we are to return to a stable system, we must put important policy and planning decisions in the hands of those who have the appropriate single-minded, long-term vision.”
However, Association of Consulting Actuaries chairman Adrian Waddingham warned: “People have tried to take politics out of pensions for as long as I can remember but it won’t go. Taking politics out of pensions can’t be done – it is an important part of social policy.”
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