29/09/03

The ABI (Association of British Insurers) is launching a ten-point Pensions Manifesto, Better Pensions for All, at a Labour Party Conference fringe meeting today in Bournemouth. The Association is calling for the Government to take urgent steps ‘to avert a full-scale pension crisis’.

New polling research released this morning by the Association also reveals that only 15% of the public trust the Government not to let them down on their pensions. The poll, conducted by YouGov for the ABI, is the first in a regular series looking at pensions in the UK. It shows that only 4% of people are very confident that they will have enough money to live comfortably when they retire; 61% are either not particularly or not at all confident.

Mary Francis, Director General of the ABI, will tell today’s meeting that pensions policy is now a top policy priority. She will say:

“We need a long-term strategy and more action now to start the process of reform. We particularly want to see a big push to promote pensions via the workplace, and to help employers to do more.”

Better pensions for all sets out ten steps the Government must take, in partnership with the pensions industry, employers and trade unions, to boost saving and pension provision:

1.      set clear and unambiguous targets to demonstrate how serious the Government is about reducing the number of people who are under-saving for retirement and establish an independent assessment of whether policies are working;

2.      reform state pensions to ensure that the system is sustainable in the long-term and sends a clear message to the public that it pays to save;

3.      put employers are the centre of pension provision by allowing them to promote the schemes they offer, encouraging them to offer financial advice in the workplace and giving them practical help to do so;

4.      increase employer contribution levels by providing the right incentives. Employer contributions are key to motivating saving and the Government needs to consider tax incentives to encourage more employers to put money aside for their employees; 

5.      develop a national consumer information and awareness strategy to ensure the people know the importance of saving for retirement and the risks of not doing so;

6.      give consumers more choice on annuities so that they get full value for money for their pension saving;

7.      create a simpler and fairer framework. Government proposals in this area are welcome but a number of modifications are needed to make it work, not only now but in the future;

8.      ensure that the self employed are encouraged to save by putting them on an equal footing. They should be compelled to join the State Second Pension or take out some form of private pension equivalent;

9.      build confidence in occupational schemes by introducing the proposed Pension Protection Fund, but ensuring that it is properly funded from the outset with clarity about how and what level of benefits will be paid;

10.  deliver simpler pensions products with advice, ensuring that the products, sales process and charging structure are not only attractive to customers by economic for providers to offer.

Provided by the ABI