mast image

Special Report

ESG: The metrics jigsaw


Pension compulsion debate returns to UK

UK – The issue of whether people should be forced to save for their pensions seems to be back on the political agenda following remarks from new pensions secretary David Blunkett.

"I've ruled nothing out," he told BBC radio. "I haven't ruled out the issue of some means of ensuring people do save. We have got to look at the point when people start saving for themselves.” Blunkett, who took on the pensions brief last week, was set to make a speech to the National Association of Pension Funds today.

He told the BBC: "The issue is not tax versus saving, (or) the question of how long people work. It's what people are prepared to do for themselves, and how we as a government support, enable and facilitate them doing it for themselves."

Opposition pensions spokesman Malcolm Rifkind told the same programme: “We have to find ways of creating an incentive for people to save and the government must set an example by creating these incentives.”

Digby Jones, director general of the Confederation of British Employers, said: “Compulsion is not the answer, it would be viewed by both employers and employees alike as yet another stealth tax."

Rifkind was also critical of Blunkett’s remarks about what he termed the government’s £5bn (€7.3bn) annual “raid” on pension funds stemming from the abolition of tax relief on equity dividends.

He said: “The £5bn confiscation is indeed as serious for future pensioners, if not more so, than the pensions mis-selling scandal. Where he is wrong is that the £5bn confiscation is not a thing of the past.”

Have your say

You must sign in to make a comment


Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2575

    Asset class: Core Real Estate Muli-Manager Separate Managed Account.
    Asset region: Global.
    Size: CHF 150m.
    Closing date: 2019-12-20.

  • QN-2576

    Asset class: Small Caps Equity.
    Asset region: US.
    Size: $>100m.
    Closing date: 2019-12-09.

  • QN-2578

    Asset class: Sovereign Local Currency Emerging Market Debt.
    Asset region: Local emerging markets.
    Size: EUR 950m.
    Closing date: 2019-12-19.

Begin Your Search Here