She says due to increasingly complex retirement needs and the lack of savings provision to meet aspirations, there needs to be a holistic review of the market rather than the Government trying to tinker with details of tax or pension legislation.
She says it would be better for the Government to introduce a personal accounts scheme run by the private sector, such as New Zealand’s Kiwi-Saver scheme.
Vahey says: “People approaching 60 no longer want to hang up their work tools and pick up their slippers – they may want to carry on working full-time or part-time. They do not fully understand the consequences of longevity on their income or the potential impact of long-term care if they require it. We need research to understand the challenges.”
Budge and Company associate director Kevin Anderson says: “People need to start thinking differently but I am not sure a review is the answer. We need more flexible products such as Isas that transfer into pension plans and are marketed as combined products to encourage people to save when they are younger.”