Pensions report
The Employer Taskforce for Pensions has published a report on the pension system.
Government Response: Department for Work and Pensions
"The report contains an important message for employers - that they can and should do more. I would urge employers to look carefully at the recommendations in this report and to do everything they can to enable their employees save for retirement."
Graham Vidler, head of policy at Which?, said: "It's time for government to act and provide consumers with leadership and real choices on pensions rather than relying on an industry with a legacy of mistrust and poor products.
"Our research shows that most of the British public agree there is a pensions crisis with three quarters blaming the government for failing to address it. The research also reconfirms that trust in the financial services industry remains disturbingly low. Fewer than one in three trust financial institutions to run their pensions.
"Hardly a recipe for success. The complexity of the
Stakeholder Response: Chartered Institute of Personnel and Development
Charles Cotton, CIPD reward adviser, said: "Pensions can cost employers a lot of money - but they can also be a huge investment for the business. As people become more worried about the future of retirement, the pension offered by an employer could become more of a deciding factor for potential employees. But far too many employers with excellent pension arrangements are hiding their lights under a bushel.
"Organisations have different challenges to face around their workforce demographics and available budgets. There is no single great pension scheme or one way to communicate. Employers should think about the bigger total reward picture and select a pension scheme that meets the needs of the business.
"They also need to think about the procedure and the way that they communicate the pension scheme to their staff, making sure they invest enough time and money to select a communication medium suitable for their staff such as email, posters and presentations, and ensure employees are able to understand this information. This can help turn pension costs into a huge investment for the business."
Stakeholder Response: National Consumer Council
Ed Mayo, chief executive of the National Consumer Council and member of the Taskforce Advisory Board, said: "Today’s report recognises the complexity of our current voluntary pensions system - where company schemes, the state pension and personal savings, all interact to affect our income in retirement - whether we are comfortable or struggling.
"Among the Taskforce’s many sensible recommendations, NCC particularly welcomes those aimed at raising awareness - among employers and public alike - of the importance of good occupational pensions, how they interact with state pension provision, and what that means for individuals’ savings plans.
"If people face working longer and saving more to ensure they don’t struggle in retirement, they need greater clarity about how worthwhile that extra effort is going to be. For people on low earnings who can ill afford to make the wrong decision - this is the trickiest pension conundrum of all. That’s why NCC is now urging government to heed the taskforce and provide greater clarity on who will and won’t benefit from saving more - privately or through their company scheme."
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