The UK’s pension system got a boost with confirmation that the Government is to proceed with the National Employment Savings Trust, according to research from Mercer.
Melbourne Mercer global pension index, which rates pension systems in 14 countries, has the UK in sixth place amid concerns over sustainability and integrity. But the UK’s “pension adequacy” score was significantly improved in response to the progress on Nest.
Mercer partner Deborah Cooper says: “The index favours pension arrangements that are funded and broadly inclusive, so the introduction of auto-enrolment should contribute to an improved score from 2012.”
Mercer senior partner David Knox says the economic crisis threatened the sustainability of pensions in several countries. He adds: “This was reflected most acutely in the scores for Canada, the United Kingdom and the United States.”
Knox also indicates that a rising state pension age, as the Government set out in last week’s comprehensive spending review, is becoming inevitable.