Industry supports reforms
Several industry specialists have welcomed the ABI’s proposed reforms, as several calls have been made for the government to increase minimum pension contributions.
Nigel Peaple, director of policy and advocacy at the Pensions and Lifetime Savings Association, noted that “current pension contribution levels are not likely to give people the level of retirement income they expect or need”.
“As the government seeks to ‘level-up’ the economy, narrowing wealth disparities between regions and different demographics, we think now is the right time for it to commit to a timetable for levelling up pensions, gradually, over the next decade”.
Phil Brown, director of policy at B&CE, provider of The People’s Pension, argued that “millions of people are only making the minimum contribution to their pension, which in many cases won’t be enough for people to live on in retirement”.
He added: “While a conversation about the minimum contribution rate is desperately needed, it should not just be between the pensions industry and government, we must find consensus among employers and trade unions too.
“The current cost of living crisis climate means that now is not the right time to do it, but we need to be ready to consider the future of automatic enrolment once the economic situation improves.”
calum.kapoor@ft.com
