The Government needs to introduce compulsory pensions contributions among other changes if the "pens...
The Government needs to introduce compulsory pensions contributions among other changes if the "pensions crisis" is to be solved, the Consumers' Association says.
The association makes the claim in a report outlining a seven-point plan ahead of further debate on the Pensions Green Paper.
By looking at the "crisis" from a consumer's viewpoint, the report - "Blueprint for a national pensions policy" – drafts a "solution" to the problem.
Topping the CA's list of changes is compulsory contributions, which it says have become a necessity because they are "the fairest way to ensure future generations do not pay the price for Government's policy failure today."
An improved flat-rate basic state pension as a foundation and a pre-funded additional pension with contributions invested via new collective-based pension schemes, as well as a whole range of new pension schemes should also be introduced, the CA adds.
"So far the Government has underestimated the extent to which consumer confidence and trust in the pension system and financial services industry has been shattered," says CA director Sheila McKechnie.
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