Miles Templeman, Director General of the Institute of Directors has told members in a New Year address that solving the pensions crisis has to be a top priority for 2005.
In October, Chairman of the Pensions Commission, Adair Turner unveiled a report that revealed a pensions gap of £57 billion a year.
Templeman, said: “Pensions are now very high on everyone’s lists of concerns. The issue is clearly complex and finding a solution will be a long-haul, but the IoD is keen to take a lead through consultation and dialogue.
“The starting point for any reform of pensions policy has to be simplification. The current system is hideously complicated and must be made transparent and comprehensible to everyone.”
The IoD has announced a consultation exercise with its members. The results are to be published later in the year.
“Ultimately, we need to see a savings renaissance in the UK. The Government does have an important role to play, but ultimately it is a matter of individual choice. Where the Government does have fundamental responsibility is in deciding the retirement age and the generosity of the State Pension. And, here, the Government is going to have to make some tough choices,” Miles Templeman said.
“Businesses do not want to see the overall tax burden rise. Indeed, there is a good argument that the current tax burden is one of the reasons why individuals and businesses cannot save more into pensions,” he added.
Mr Templeman also announced his intention to focus on the education and skills agenda in the New Year. The theme of long-term employability will provide a platform from which to raise a number of key questions, he said.
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