UK - Employers have outlined a range of measures to help restore confidence in the pensions industry and avoid widespread pensioner poverty in the future.
The Confederation of British Industry’s 22-point plan – Securing our future – includes restoring the National Insurance rebate for contracting-out, urging firms to consider hybrid schemes as an alternative to money purchase provision and raising the state pension age to 70.
The CBI pointed out that while the Pensions Bill was “about protection for employees and consumers, employers needed their confidence rebuilding, too”.
Unilever UK chairman and CBI pensions strategy group chairman Richard Greenhalgh said: “The UK’s voluntary approach must be reinvigorated and we are confident it can be. That means employers, government and individuals recommitting to pensions and each accepting their responsibilities.”
The CBI report accepts that employers must do more on pensions and in what it admitted would make “challenging reading for its own members”, its first recommendation states: “All employers who can afford to, should make pension contributions when their employees also contribute.”
It also recommends an automatic scheme opt-in for new employees.
Its most controversial recommendation is that the state pension age should be raised to 70 over the decade from 2020 and 2030.
This, it says, will help fund a more generous state pension for the large number of low paid people who are presently saving little for their retirement.
The Department for Work and Pensions (DWP) will develop and test new ways to include 4.8 million self-employed workers in pension savings.
Opt-out rates at the end of June 2018 "remained consistent" with levels before the April contribution rate increase, according the Department for Work and Pensions (DWP).
The Pensions Regulator (TPR) has appointed Charles Counsell as its new chief executive, who will take over from Lesley Titcomb next year.
The Financial Reporting Council (FRC) should be abolished and audit and advisory businesses should be split into separate entities to improve the sector for both savers and investors, two reports published today say.