The government should move to protect people’s pensions as the recession continues to take a toll of the retirement savings sector, a report suggested today (November 27th).
According to the National Association of Pension Funds’ (NAPF) Annual Survey, 83 per cent of industry representatives wish to see more long-term government bonds being issued in order to bolster the financial position of the funds.
Deep uncertainty over the government’s planned 2012 introduction of auto-enrolment Personal Accounts was also revealed by the poll.
Just over four in ten of those questioned said that they would retain their scheme in its "current form" past this date, while eight per cent are planning to reduce their employer contributions after 2012.
A further 27 per cent have yet to decide their plan of action.
Savers wishing to sidestep this pensions uncertainty retain the option of taking out an equity release plan by using value stored in their homes.
This provides a source of income independent from pensions.
NAPF chief executive, Joanne Segars, said: "The government can no longer sit on its hands. It must take bold and positive action to help support employer-sponsored pensions.
"The chancellor has a golden opportunity to make a difference in his Pre-Budget Report by announcing that the government will issue more long-dated and index-linked gilts. This single measure would benefit pension funds by helping to reduce deficits and support corporate scheme sponsors by reducing the scale of pension fund liabilities on their balance sheets."
Posted by Tom Papworth
