Coalition calls for pension reform

A coalition of leading industry groups and charity organisations is urging the government to reassess its current pensions policy to provide a new dea

12:33 20 June 2005

A coalition of leading industry groups and charity organisations is urging the government to reassess its current pensions policy to provide a new deal for millions of Britons.

The TUC, consumer group Which? and charities Help the Aged and Age Concern are calling for more action to be taken on providing adequate retirement incomes for UK workers.

Allied in a campaign group, the People's Pensions Commission, they recommend a system of compulsory contributions for all employers while urging workers themselves to supplement the existing state pension.

Concerns have been raised that the existing state pension system is failing to ensure that pensioners will be financially secure in the future and does little to promote saving for retirement years.

"This is an unprecedented alliance for a radical new pensions settlement," said TUC general secretary Brendan Barber.

"Many in the pensions debate are vested interests. Their lobbying is entirely legitimate, but this powerful coalition speaks for millions."

It is estimated that more than 12 million Brits are not making adequate provisions for their pension, a problem many believe could be helped by the introduction of greater flexibility over retirement, especially regarding the retirement age.

The government's pensions commission is currently considering changes to UK pension rules, including a potential increase in taxes, raising the retirement age or enforcing compulsory savings.