Pensions blackhole could leave millions in retirement poverty
A NEW independent pensions commission must be established by the next government to encourage people to save more, a report warns today.
Britain is facing a huge pensions black hole that could see millions living in poverty in their retirement, it says.
The report found that despite numerous drives to encourage a stronger savings culture, huge numbers of people are still unlikely to have adequate funds for their later years.
The study from the International Longevity Centre-UK think tank wants the new pensions commission to be urgently introduced after the May general election.
It would define targets for retirement savings, monitor progress towards these targets, monitor progress and recommend new policy reforms.
Ben Franklin, senior research fellow at ILC-UK said: “A new Pensions Commission is urgently needed.”
The report, sponsored by Prudential, warned that with people living longer, more years are spent in retirement.
Women will need to fund around 26 years in retirement, while men will need to find funds for around 21 years.
Pensions expert Dr Ros Altmann said: “Of course the pensions industry says we must all save more…but the reality is that we also need to reassess our retirement thinking too.
“Working longer – preferably part-time – can help people make up for a lack of savings and we urgently need to help ensure that employers enable this.”
