Pension paper falls short on state reform

5 Jun 03
Pensions Secretary Andrew Smith's green paper this week came under renewed fire after a survey revealed that 95% of employers feel it should have included reforms of the state pension system. A study by the Association of Consulting Actuaries, publish

06 June 2003

Pensions Secretary Andrew Smith's green paper this week came under renewed fire after a survey revealed that 95% of employers feel it should have included reforms of the state pension system.

A study by the Association of Consulting Actuaries, published on June 3, concluded that 'state pension reforms need to be included in the final reform proposals'.

The paper, published last December, attempted to address the supposed £28bn shortfall between what Britons are saving and what they will require after they retire.

Dubbed the 'work 'til you drop' agenda, it proposes allowing people to work beyond the basic state pension age of 65 as well as numerous modifications to existing occupational and personal pension plans.

But it contained few proposals to overhaul the much-criticised state system. The ACA report, Pension reform: too little, too late, says: 'The state pension structure… remains a mess upon which to build private provision. It is highly complex, riddled with means testing and it is in need of massive simplification if it is to be understood by the wider public.'

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