A charter calling on main political parties to commit to creating a fair and affordable pension system ahead of a general election has been signed by the Pensions and Lifetime Savings Association and nine other signatories.
The charter, Building a Consensus for Better Pensions, calls for major reforms to improve pension outcomes including setting clear objectives for the UK retirement savings system.
Speaking on the charter, PLSA director policy & advocacy, Nigel Peaple, commented: “It’s almost 20 years since the pensions commission proposed reforms to the UK pension system.
“Although, as a result of those reforms, more people eligible for the state pension and are saving for retirement in the workplace, too many are falling far short of being on track for a good retirement income.”
He added that the PLSA and the other signatories are asking that all 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.
The initial signatories include Age UK, Association of Professional Pension Trustees, Chartered Institute of Personnel and Development, LCP, and the Pensions Administration Standards Association.
The People’s Partnership, provider of the People’s Pension, The Investing and Saving Alliance, and the Association of British Insurers are also signatories.
ABI assistant director and head of long-term savings, Robert Yuille, commented: “To help everyone save for their future and enjoy the best possible retirement, it’s important to have a long-term strategy built on consensus.
“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 the further change.”
This initial group are calling on the main political parties as they prepare for the next general election to commit to reforming UK pensions.
This includes setting clear objectives for the UK pension system: taken together, state workplace and personal pensions, should be adequate, fair and affordable.
The charter also calls for a universal state pension that protects everyone from poverty and covers all basic needs as it “plays an essential role” in the pension provision of most citizens.
It also called for retirement saving that benefits as many people as possible, in particular, traditional under pensioned groups including: the self-employed, gig economy workers, multiple job holders, low earners, women, and ethnic minority groups.
Lastly, the charter called for improving outcomes to ensure that pensions provide a decent standard of living throughout retirement.
Additionally, Tisa head of retirement, Renny Biggins, 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 pension charter is a positive step in that direction and allows us to present a unified and clear message on the key areas of focus for future policy creation."
