Product providers have given their approval of the plans to encourage staff to join occupational pension schemes but several life offices are calling for the DWP to do more now to encourage saving.
Scottish Widows says it is disappointed there is nothing from the DWP that deals with the issue of the disincentive to save which is caused by means-tested benefits.
Prudential is calling for financial incentives to encourage smaller employers to give contributions because of the way that encourages employees to match those contributions.
Legal & General says the law should be changed so it is no longer prohibited for employers to promote or encourage employees to join stakeholder pension schemes even if there is no employers' contribution.
Scottish Widows head of marketing (technical) Ian Naismith says: “We are disappointed the Government has again ignored the problems with state pensions and in particular the Pension Credit.”
Prudential worksite communications director Dave Harris says: “The Government has recognised the importance of employers taking a more proactive role in helping staff understand the importance of saving and managing their finances by removing the barriers and making it easier to communicate benefits.”
L&G corporate business division director Diane Buckley says: “Ways must be found to induce more employers to contribute to pension schemes if employees are to recognise the value of their pension benefits so they too want to contribute.”