Pension News State Pension System Archaic

Written by Editorial Team

13 February 2004

Britain’s state pension system has been slammed as “archaic” by the National Association of Pension Funds (NAPF).

Earlier this week the government unveiled its plans to overhaul the private pensions system, providing a special fund to help people who have lost out because their pension scheme has gone bust.

NAPF, which represents employer-sponsored pension providers, gave the plans a lukewarm reception.

Chairman Terry Faulkner believes the government has not gone far enough. He would like to see measures to reform the state pension system among others.

“Is there anything to encourage firms to offer decent pensions to their employees, or keep existing schemes open?” he asked. “Are there new incentives to encourage people to save?”

“Regrettably, the answer to all these questions is ‘No’,” he said.

The government is under pressure from the financial services sector to encourage people to provide for their old age.

Some MPs have backed plans to bring in compulsory private pensions.