Aries Insight, the pensions technical specialist, today called on politicians and the industry to work together to bring an end to the constant changes to UK pensions legislation and create longer-term thinking for the good of all concerned.
Ian Neale, Director at Aries, said: “We are again on the edge of a new political era and the pensions community will be bracing themselves for another wave of uncertainty to hit the industry as a result of political interference. Whether this will come in the form of tweaks or removal of current expected legislation, or something new altogether, it is clear that the whole industry is fed up with this constant evolution.
“Obviously some changes have been welcome in recent times, such as auto enrolment and elements of the pensions freedom options, but these have been small positives in a sea of politicised tinkering with allowance limits and restrictions. These changes have left the industry not only confused about how to apply new legislation to schemes, but also cautious of doing too much work that will then be unravelled by the next political whim - meaning many members are drifting towards retirement with less and less time to make correct decisions to boost their income because there is no confidence that the same rules will apply further down the line. This epitomises the wider mistrust in pensions and the recent growth of ideas such as cashing in benefits to invest in property instead.”
Neale added: “There is widespread desire amongst those who understand pensions for a long-term and lasting consensus on legislation so that trustees, employers, advisers and members can all establish a clear method for working towards people’s retirement outcomes. It is inherent in the very nature of a pension as a long-term savings vehicle that there will be long-term predictability about the rules, and politicians need to accept this right away. Pensions are typically set up under trust – and trust is exactly what we need.”
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