PIMA welcomes two-stage approach to pension reform but urges Government to put consumers first
PIMA believes that the Government’s two-stage pension reforms outlined in today’s White Paper is sensible and pragmatic.
The decision to consult on detailed plans for the National Pensions Savings Scheme (NPSS) is welcomed. PIMA believes that more thought needs to be put into the shape and scope of the NPSS. While the Government has indicated commitment to personal accounts, the details of any proposals going forward are crucially important.
PIMA’s Savings and Retirement Accounts (SaRA) proposal builds upon the widely understood ISA regime which has encouraged over 16 million savers to invest over £190 billion. The Government should embrace this opportunity to build on its own immensely successful scheme and consolidate all savings— short, medium and long-term—into a single scheme. This would incorporate many of the same features of the NPSS (including tax relief and employer contributions), as proposed in the Pensions Commission Report, while giving consumers increased flexibility and choice over their investments for their retirement.
PIMA Director-General Tony Vine-Lott said,
‘We look forward to continued consultation and work with the Government to ensure the best scheme for all savings in the UK. We applaud the Government’s proposed reforms in the White Paper released today. A better State Pension that clearly sets out what can be expected in retirement will help all Britons plan for their retirement. We urge the Government, as it proceeds with the second stage of reforms, to remain committed to consumers by allowing choice and flexibility over investments to be included in any personal account savings scheme.’
For more information:
Tony Vine-Lott, Director-General, PIMA
07790 006108
Iain Anderson or Jacob Coy, Cicero Consulting
020 7665 9535
079 0039 2531