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CBI comments on Private Sector pension report

The Workplace Retirement Income Commission’s report on private sector pensions identifies the need to boost retirement savings, and how to encourage a culture of saving in the UK.

However, Neil Carberry, CBI director for Employment is unconvinced that the proposals will do enough to encourage saving, and believes that the current plan to introduce a floor of 8% saving is still the best way to make people save.

He said: “This level was chosen by Lord Turner’s Pensions Commission to deliver a pension at a level hard-pressed employers and employees could afford.

“Further increases in the minimum contribution would put employers and employees under even greater financial pressure, and may drive people away from pension saving altogether.”

Neil is now encouraging employers to get more involved in pensions schemes.

He added: “The way to drive a change in the savings culture is for employers to have more freedom to design schemes that work for them and their employees.

“That means simplifying rules and fostering greater employee engagement with pensions, not top-down solutions.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .