The National Association of Pension Funds (NAPF) says the Government has missed a golden opportunity to simplify the pensions landscape and boost future retirement saving.
The NAPF has welcomed measures in the Government’s Pensions Green Paper that will simplify the running of workplace pension schemes. But, it warned, the proposals will do nothing to boost public confidence in pensions by simplifying the complex state pension system. Nor would they offer incentives to save, either to pension scheme members or employers who provide them. The NAPF said that with growing numbers of employers closing their final salary pension schemes to new members, the Green Paper proposals will not reverse this trend, and is unlikely even to halt it.
NAPF chairman Peter Thompson, said: “Any simplification of the pensions landscape is welcome, and the Green Paper provides a number of positive and practical proposals to ease the administrative burden on employers with workplace pensions.
“But the Green Paper proposals are too narrowly focused. They fail to address the problem of complexity in the state pension system, which is a critical barrier to building public understanding of, and confidence in, pensions. They also offer no boost to incentives to save through a pension.
“What was - and still is - needed is a root and branch review of pensions coverage in the UK. The Inland Revenue succeeded in identifying radical and positive ideas for reform of the tax regime for pensions. I am disappointed that the DWP has failed to take this golden opportunity to bring about equally radical change in the wider pensions regime.”