In his inaugural address to the NAPF Investment Conference as Investment Council Chairman, Ray Martin has set out the six steps politicians must take to fix the UK’s pension system.
In his speech, Mr Martin, said:
“The noughties were a lost decade for pensions. Ten years ago there were two million more people in private sector defined benefit schemes than there are today. By anybody’s standards that’s an astonishing decline.
“Politicians must take urgent action to fix workplace pensions. Ahead of the General Election, and ahead of the Budget in two weeks time, the NAPF calls on political parties to set out the steps they will take.”
The six key actions the NAPF believe politicians should take are:
Reverse the Government’s decision to withdraw higher rate tax relief on pension contributions.
Simplify the 2012 reforms to help employers comply, rather than assume they are going to avoid their obligations.
Change the objectives of the Pensions Regulator so that it has a duty to encourage the creation of an environment in which pension provision can flourish, not just existing to protect the Pension Protection Fund.
Ensure that accounting standards are fit for purpose and give transparency to investors while recognising the long-term nature of liabilites.
Issue more long-dated gilts and index-linked gilts to enable pension funds to better match their liabilites.
Put simplicity at the heart of pensions policy, both in the State and workplace provision.
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