Government called to act to prevent pension crisis

Tuesday, November 29, 2005

The Association of British Insurers (ABI) and the Engineering Employers Federation (EEF) have come together to urge the government to solve the potential pension crisis.

With the highlighting of a recent trend of under saving for retirement through pension schemes, the EEF and ABI have said that following the Pensions Commission's report the government must act.

"The Pensions Commission's report represents a unique opportunity for the government and the country to address under-saving for retirement in the UK," said Stephen Haddrill, director general of the ABI, and Martin Temple, director general of EEF through a joint statement.

"Amid all the speculation about Lord Turner's report and how the government might respond, it is absolutely clear that doing nothing is not an option and that some difficult choices need to be made."

The potential pension crisis would mean people have insufficient pension funds when they retire, so encouraging saving now is a must.

The EEF and ABI also promoted the idea of employer donations to encourage employee pension contributions and to bolster pension savings.

In other pension news, Chancellor Gordon Brown has this week stated that young public sector employees have to accept that their pensionable age may very well increase over the coming years.

Need to know more about pensions? Click here:
http://www.europinions-finance.co.uk/pensions/pensions/