19 October 2009
The Institute of Directors (IoD) has today launched a major
new report into pensions. The report called "Roadmap for Retirement
Reform 2009" proposes a sweeping reform agenda for both
the state and private schemes.
Malcolm Small, Senior Adviser, Pensions Policy at the IoD and
author of the report, said:
"We were surprised at the appetite for radical reform amongst IoD
members. Both state and private pension systems have now become so
complex that people are becoming disengaged from pension saving and
are looking for alternatives. If people don't like the structure,
they are less likely to stay in it, even if they are auto-enrolled
into saving, as they will be from 2012."
The paper proposes four major changes:
- Raising the state pension age should rise to 70 as soon as
reasonably practical
- The abolition of the State Second Pension should be abolished,
together with most means tested retirement benefits
- The savings to be diverted to the provision of a universal
Basic State Pension
- The replacement of the current private pension saving
regime
