This letter appears in this morning’s edition of the Times
We all deserve access to pension products that provide us with better and more certain outcomes. Other European countries encourage private pension systems which are far more efficient that those in the UK. Indeed, if a typical Briton and a typical Dutch person, both save the same amount, have the same life expectancy and retire on the same day; the Dutch saver will get up to a 50% higher pension than the Briton.
The coming Queens speech will provide an opportunity to change this by legislating for Target pensions (also known as Collective Pensions) in the UK, pensions which for many, can offer better outcomes through their design and structure.
Markets don’t work if regulation stops them from doing so. So, although collective pensions are at the heart of the best pension systems in the world, it is currently illegal to set up a collective pension in the UK unless it is backed by an employer promise. Since employers are unwilling to give such a promise, we have regulated one of the best forms of pension out of existence. We now call on the government to change this, and to provide pension savers in the UK with a choice to have access to Collective DC, within a safe regulatory framework, such as that which exists in Holland.
Such a policy would have the support of various employer and employee bodies in the UK and has political support from across the main political parties. It is time to stop British pension savers being the ‘poor man’ of Europe.
David Pitt-Watson, Director, Tomorrow’s Investor, at the Royal Society of Arts
Sir John Banham, Former Director General Confederation of Business and Industry, Former Chairman of Johnson Matthey and Whitbread
Nigel Stanley, TUC Head of Campaigns and Communications
Barry Parr, Co-Chair, Association of Member Nominated Trustees
Lindsay Thomas, Former FSA Authorisation & Supervision Director
Kevin Wesbroom, Senior Partner of Aon Hewitt
Con Keating, Head of Research, BrightonRock Group & Member Research Commission, European Federation of Financial Analysts Societies
Henry Tapper- Founder -Pension PlayPen
Derek Benstead- Actuary- First Actuarial
Imogen Parker, Research Fellow, Institute for Public Policy Research
Dr Hari Mann, Visiting Fellow, CASS Business School
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