Occupational pensions are under threat from proposals outlined in the
Chancellor's enterprise shake-up announ-ced last week, says employee
benefits consultancy Buck Consultants.
It warns that Government measures to encourage small business start-ups
will result in an investment culture taking inappropriate risks.
Buck says that by interfering with the investment process of bigger
company pension schemes and increasing the number of smaller businesses
that often do not have an adequate company scheme, occupational pensions
are threatened with a “pincer movement”.
Buck says many of the rec-ent steps in this direction are a result of the
Myners Report into institutional investment which criticised the
risk-averse attitudes nature of this sector.
Buck Consultants technical and legal expert Kevin Le Grand says: “The
Government has lost sight of the need to provide an effective private
sector system to ensure adequate retirement income for the burgeoning
number of UK senior citizens.”