Lord McFall says his independent commission on workplace retirement saving will consider whether providers take advantage of the complexity of the pension market to maintain power over consumers.
Speaking to Money Marketing following the launch of the NAPF-backed workplace retirement income commission, McFall said: “Complexity means opaqueness and at the moment the power is with the provider rather than the buyer. You could argue that providers have a competitive interest in using complex language. If there is a public spotlight on issues it tends to bring clarity of thought and I think that will be the case with providers.”
The commission will focus on the range of pension products available and seek to address the issue of pension adequacy. It will also consider whether the minimum contribution level of 8 per cent under automatic enrolment needs to be raised.
Five people will work alongside chairman McFall – Agusta Westland managing director Graham Cole, Usdaw general secretary John Hannett, RPMI chief executive Chris Hitchin, Institute for Fiscal Studies director Paul Johnson and Sainsbury’s HR director Imelda Walsh.