Labour has criticised the Government’s “lack of urgency” in pursuing its commitment to reinvigorate occupational pension saving.
Yesterday, the Department for Work and Pensions published a wide-ranging paper, titled Reinvigorating Workplace Pensions, setting out how it thinks saving could be made more attractive.
The paper touches on a number of potential policy ideas, including auto-escalaton and how to deliver ‘defined ambition’ pensions.
Potential defined ambition options include “core” defined-benefit schemes where indexation is not guaranteed, DB schemes where payments are crystallised at the point a member leaves the scheme and defined-contribution schemes with low-cost guarantees.
Labour shadow pensions minister Gregg McClymont (pictured) says: “This Government promised to reinvigorate workplace pensions, but after two and a half years all they have produced is a plan to develop a plan of action.
“The Government’s lack of urgency is astounding given independent report after independent report has exposed in the last year the potential for savers to be ripped off by high and unfair charges. The Government must act to ensure the success of the new workplace pensions.
“This means high quality low cost transparent pensions managed by independent trustees and operating at scale. These are fundamental building blocks for pensions people can trust.”