Pensions - Articles - CBI comments on the WRIC's private sector pensions proposals

 Neil Carberry, CBI Director for Employment, said:

 "This report rightly identifies the need to do more to boost savings for retirement, and makes some helpful recommendations about how to build a culture of saving in the UK.

 "However, the commission's proposal to consider increasing the minimum compulsory pension contribution in 2017 is not the right answer. The current plan to introduce a floor of 8% saving from next year remains the best way to ensure more people who can afford to save do so.

 "This level was chosen by Lord Turner's Pensions Commission to deliver a pension at a level hard-pressed employers and employees could afford. Further increases in the minimum contribution would put employers and employees under even greater financial pressure, and may drive people away from pension saving altogether."

 On the proposal for employers to take on a share of defined contribution pension risk, Mr Carberry said: "The way to drive a change in the savings culture is for employers to have more freedom to design schemes that work for them and their employees. That means simplifying rules and fostering greater employee engagement with pensions, not top-down solutions."