Pensions
Consumer confidence in pension saving needs to be tackled if more individuals are to be encouraged to divert substantial parts of their lifetime earnings into private retirement saving. People need to be assured that their investments are likely to be safe and that their contributions will benefit them in the long term.
Just as individuals need incentives to save, employers need incentives to offer good pension schemes to their staff. With a reported black hole in fund shortfalls and equity markets awaiting a sustained recovery, businesses must be given tangible help to run schemes and encouragement to contribute to their funding. One positive step would be to restore dividend tax relief for pension schemes.
Government must at the same time take care to avoid turning the operation of a workplace pension scheme into an excessively onerous obligation. If running a pension scheme is regulated too heavily, many more workers will see their saving options restricted.
ACCA believes that there are three big issues which the Government and Parliament have to address:
- how to ensure the continued involvement of employers
- how to make money purchase pension saving an attractive and rewarding exercise
- the relationship of the state system to the private system
To access ACCA policy briefs, manifestos, research and consultation responses visit www.accaglobal.com/policy
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