Employee reward and benefits news
New govt faces 'pension crisis challenge'
The new work and pensions secretary has lots to do if he is going to fulfil his aim of simplifying the employee benefits system, according to a leading industry expert.
Policy adviser Dr Ros Altmann believes that new department secretary Iain Duncan-Smith has strong credentials, but has underlined that he takes over at a "crucial time".
She has outlined a number of important areas of the pensions sector that need to be addressed about which there have yet to be any announcements.
Among them are proposals to help companies struggling with pension deficits, straightening out the higher rate pension tax relief changes and improving employee flexible benefits specifically for pension products.
Dr Altmann added: "We will be watching developments and hoping that finally our government will act to ensure a revival of our once-strong savings culture.
"The opportunity for radical and successful reform is there - I do hope the policymakers will take it."
More than 11 million Brits expect a worse standard of living in retirement than they have now, according to research by MGM Advantage published yesterday (May 12th).
The survey indicated that 16 per cent of Brits expect to be significantly worse off when they retire to draw their pension.
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Posted by Peter Chad
