A prolonged, open-ended delay will be damaging for industry confidence in the ability for real change to take place. More importantly it defers better retirement prospects for millions of people. Retirement adequacy is an enormous issue for savers heading towards retirement, and in turn this will remain an ongoing concern for future governments and UK society as a whole.
“There should be nothing to fear from undertaking a meaningful pension review to tackle the adequacy challenge. Given the lack of timescale provided, this delay could add months and years to the formation and implementation of decisions. The positive effect of those changes would be measured in generations, so it is vital that it happens. The potential positive impact of the delay will be felt by businesses and employers in the short term. This is an important consideration to factor into the timing of the review, as should be the cost-of-living challenge facing people today. These are just two examples of many, including lack of home ownership, household financial resilience, financial education, and school programmes, that should influence the shape and timing of any new policy interventions. The Government has cited concern about the impact of the review on businesses. But it could start tomorrow with any impact delayed until a future date.
“We would urge the government, if it must delay, to take it as an opportunity to design an independent pensions commission, as outlined in our Pension Policy Paper, to work with industry, and across the political spectrum. This will give the confidence and conviction to the commit to adequacy. Meaningful change, that will last beyond a generation, would benefit from such an approach to give confidence in decisions, help make tough choices and ensure promises are delivered. This will give the best chance of leaving behind better jobs and a UK pensions system to be proud of from the Labour government.”
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