01.08.11
Poor future for pensions
A recent report suggests that the current pension system is inadequate, and could leave up to nine million people suffering in old age. This is a third of the current workforce.
The National Association of Pension Funds (NAPF) commissioned the former chairman of the Treasury Committee, Lord McFall, to investigate pension provision in the private sector.
McFall stated: “Too many people are stuck in a complex, costly and inefficient system that relegates the consumer's interest to second place. On top of that, they simply are not saving enough to secure a decent retirement.”
With people living for longer and schemes becoming less generous, this has resulted in changes to the pension system. At the moment, 14 million are not saving for their pensions. In 2012, pension schemes will become automatic for most people, unless they choose to opt out.
Recommendations of the review include making annuities more flexible, mitigating risk and allowing big, low cost, schemes to operate.
Tell us what you think – have your say below, or email us directly at [email protected]