Commit to better pensions, political parties urged
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A new ‘Building a consensus for better pensions' charter by 10 initial signatories calls on political parties to set “clear objectives” for the UK retirement savings system, protect the value of the state pension and bring excluded groups into auto-enrolment to create an “adequate, fair and affordable” system.
The group also wants policies that improve guidance, communications and promote improved outcomes for pension savers.
The founding signatories are the Association of British Insurers, Age UK, the Association of Professional Pension Trustees, the Chartered Institute of Personnel and Development, the Chartered Institute of Payroll Professionals, consulting firm LCP, the Pensions Administration Standards Association, the Pensions and Lifetime Savings Association, provider the People’s Partnership and the Investing and Saving Alliance.
The PLSA’s director of policy and advocacy, Nigel Peaple, said 20 years after the pensions commission proposed reforms to the UK pension system, more people are eligible for the state pension and are saving for retirement in the workplace, but “too many are falling far short of being on track for a good retirement income”.
Peaple added: “We, and the other signatories to this charter, are asking that all the main UK political parties commit to putting pension reform in their general election manifestos so as to ensure that everyone in the UK has a good income in retirement.”
Helping people save requires a long-term strategy built on consensus, said Robert Yuille, assistant director, head of long-term savings at the Association of British Insurers.
“The Better Pensions Charter sets out what’s needed to secure a good standard of living for all in retirement and we’re pleased to be a signatory to help collectively drive forward that further change,” he added.
Renny Biggins, head of retirement at TISA, said TISA signed the charter because current minimum auto-enrolment contributions are too small to result in good retirement outcomes.
The proposals by the signatories “put pension adequacy at the heart of all policy debates and changes”, he said.
“As with other areas of reform, we believe that at times, the government and the regulators should adopt a more joined-up approach to change, and we as an industry should do the same. This pensions charter is a positive step in that direction."
Phil Brown, director of policy at People's Partnership, said the plan is a significant step towards creating objectives for the UK pensions system.
He said it is “vital that pensions are made fairer and that the gaps which mean that women and some ethnic minorities are worse off in retirement are closed".
The group has come together to lobby the main political parties as they draw up their election manifestoes.
Among others, they call for:
An objective for the UK pension system so that taken together, state, workplace and personal pensions should be adequate, fair and affordable.
A universal state pension that covers all basic needs, and the current value of which is at least maintained.
Retirement saving for the underpensioned, including the self-employed, gig economy workers, multiple jobholders, low earners, women and ethnic minority groups.
Supporting better outcomes through advice and guidance, industry-led initiatives and accessible good-value retirement income products, as well as designing policies so they are easy to communicate and help people make good decisions.
How should the next government reform pensions in your view?
