TUC reiterates its call on government to review pensions

The TUC has reiterated its call for the government to adopt the proposals of the Pensions Commission, after research revealed more than four in 10 adults in the UK have no pensions savings.

The study, by the Financial Services Authority and Bristol University, shows that 42% of adults have no pensions savings and that the UK’s under-40s are unlikely to save.

Brendan Barber, TUC general secretary, said the research highlights the need to adopt the measures put forward by Lord Turner’s Pensions Commission, including a national pensions savings scheme funded by compulsory employer contributions.

“A whole generation is growing up with little or no pension. Without radical action they will face poverty in retirement,” he said.

“But ministers have a blueprint for what needs to be done in the Turner Report on the future of pensions. Its dual track of modest compulsion on employers and a firm foundation of a more woman-friendly state retirement pension that keeps up with rising living standards is the way forward.”

The compulsion element of the NPSS has been criticised by employers’ groups for being unduly burdensome, but Barber insisted action needs to be taken.

“There is huge pressure on ministers to ditch the Pensions Commission proposals,” he said. “But this compelling evidence of a pensions time bomb shows that action can not be put off or half hearted.”

The Pensions Commission will deliver a final report next Tuesday (4 April), when it will attempt to address responses to its main recommendations.