The panic over the state of retirement provision continues. The Work Foundation has called on the government to change its whole strategy. Axa have warned that so many people are retiring early, the working population will not be able to sustain the retirees.
Alastair Darling has responded with the declaration that he aims to make pensions truly popular. Speaking at the National Association of Pension Funds conference in Brighton he said that with the right safeguards a range of relatively straightforward products, with simple health warnings, could be produced for the mass market. “It is clear to me that when people find it too difficult or too confusing to understand a pension, the pendulum has swung too far in favour of regulation and complexity. People should have a choice. If people want a simple product, they can buy it direct, straight from the Internet, or over the phone. But if they want something more complex, they will be able to get the advice they need.
Mr Darling also set out how he wants to make it easier for employers to maintain or start a pension scheme. “We are looking at whether we’ve got the level of regulation right and whether we’ve got the right drivers within the market place to encourage choice and competition. That is why last year the Government commissioned three reviews. Alan Pickering is looking at ways to strip away unnecessary regulation, Ron Sandler is looking at competitive forces across the retail investment industry and the Inland Revenue are considering whether to simplify the tax regime for pensions.
