Tories are 'gambling' with future generation of savers, warns Labour
George Osborne has undermined the long-term sustainability of pensions through freedom and choice, according to the shadow secretary of state for work and pensions.
In his first major speech at the annual Trades Union Congress (TUC) conference on pensions, Owen Smith said the Tories had changed the very nature of the system.
He pointed towards the falling savings ratio and rising debt levels as evidence of a fragile pension culture.
He said: "There is less security now, people drift in and out of jobs. We are living in a period of unparalleled insecurity. Pensions are just not geared up for the world of work as it is. Pensions need to get ahead of the curve to succeed. Labour needs to think harder [about] how it can persuade employers to do more [on pensions] as many defined contribution schemes will be inadequate for people in their lives."
A new contract had to be crafted between the citizen and the state to address the inadequate pensions system, Smith added.
At the same time he acknowledged the pace of change in the pension industry had been rapid and a Labour government would look to provide stability.
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