With Labour forecast to win as many as two-thirds of the available seats at the general election next month, trustees have called for the new government to focus on retirement income adequacy.
The Association of Member Nominated Trustees (AMNT) drew a parallel with its aim of helping members achieve retirement income of around two-thirds of their working income.
The association argued that it was in the government’s interests to keep defined benefit (DB) schemes going and to return their benefits to earlier, higher levels.
Janice Turner, co-chair at AMNT, said the association would work with whichever party comes into power to help it focus on what Turner described as “the biggest issue of all – providing a decent pension at the end of a lifetime of work”.
Turner said: “While the association will continue its campaigning and educational activities, it [will] also make a plea to the next government on behalf of all citizens. Please focus on the biggest issue of all – providing a decent pension at the end of a lifetime of work.
“Current personal pension provision is demonstrably failing for many of those not fortunate enough to be in one of the dwindling numbers of DB schemes.”
The two-thirds approach comes from the 2004 Pensions Commission, which concluded that people on an “average” income would need the equivalent of two-thirds of their pay as a pension to enjoy a comfortable retirement.
The AMNT said for those in a defined contribution (DC) scheme there was little chance of this level being achieved under current structures without increasing contributions.
The Pensions and Lifetime Savings Association (PLSA) has also urged the government to support adequate pension saving within its first 100 days of power, by expanding auto-enrolment and raising contribution levels.
Nigel Peaple, director of policy and advocacy at the PLSA, said: “While the landscape of pension saving has seen remarkable improvements in the last decade and a half, with greater freedom and more participants, significant challenges remain. A new government has the opportunity – and responsibility – to secure a robust financial future for all savers.
"The government must act decisively to support adequate saving and legislate to allow pension schemes to help savers navigate the choices they face at retirement."
Further reading
Going back to first principles on pension policy (AMNT column, 8 March 2024)
Delays and uncertainty for pensions as election called (PLSA column, 27 May 2024)
