The National Association of Pension Funds (NAPF) has called on the government to simplify its tax treatment of the pension market.
According to the industry body, the chancellor should adopt a budget for pension and increase the government’s supply of index-linked and long-dated gilts.
Joanne Segars, NAPF chief executive, said: "The next twelve months will be critical for UK pensions. It is essential that the government makes the last Budget of this parliament a Budget for pensions.
"As recession-hit companies assess the cost and complexity of the pension they offer their employees, the government must abandon its unworkable pension tax plans that will only serve to damage pension provision in the round."
Concerns about the complexities involved in the current pension environment could encourage a number of people to take out additional retirement funding plans to ensure they can support themselves.
Schemes such as equity release can contribute to a homeowner’s income with funds taken form the value of their property assets.
