The Retirement Income Reform Campaign and the National Association of Pension Funds have added their voices to the criticism of facets of today's Pensions Bill.
RIRC says the government has failed because it has not sufficiently addressed the issue of annuity reform.
It particularly criticises what it sees as a lack of commitment to changing outdated and inflexible annuity rules. Instead the government focused on savings rather than retirement income.
RIRC notes that the issue has been ignored in both the Pensions Green Paper and the subsequent Bill now published.
NAPF chairman Terry Faulkner says the Bill fails to “address fundamental weaknesses in the UK pensions system in the longer term”.
Promoting greater protection of schemes and improved regulation are good points, but the Bill fails on issues such as state pensions and providing incentives to employers to provide schemes.
”But is there anything in today’s Bill to simplify our archaic state pension system?,” Faulkner says.
”Is there anything to encourage firms to offer decent pensions to their employees, or keep existing schemes open? Are there new incentives to encourage people to save? Is there any real long term vision, or a clear pension strategy to achieve that vision. Regrettably, the answer to all these questions is ‘No’.”IFAonline
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