Employers are demanding a radical pensions overhaul from the government Green Paper out next week (17 December).
The Employers' Forum on Age (EFA) is calling for recognition that employment and retirement patterns are changing by breaking the link between length of service and pensions. It seeks to encourage gradual retirement as a retention tool for older employees.
The EFA wants the Inland Revenue to increase pensions tax relief and abolish contribution limits to make pensions a more attractive savings vehicle.
It is also seeking a centralised pensions body to give employees an annual benefit statement so that staff are more aware of their likely retirement income.
Sam Mercer, campaigns director at the EFA, wants revenue rules changed, including those that prevent staff from accessing their pension and salary at the same time, and that reduce flexibility on occupational pensions.
Karen Beech, EFA member and head of group HR services at Bupa, said: "Current IR rules on occupational pensions prevent Bupa staff working flexibly and make it difficult to retain skilled and valued older employees."
Geof Pearsons, pensions manager at Sainbury's, said future pension provision "should allow for starting another job, for those who either do not want to retire or who cannot afford to do so."