The Association of British Insurers have recently put forward a package of proposals that it claims are essential for a shake-up of the pensions system. Proposals include increasing access to workplace advice, reducing the amount of means testing linked to state pensions and increasing the tax credits available to employers who contribute to their workers pensions. Other recommendations in the paper include enhancing eligibility for the basic state pension, increasing the age limit on annuities and making improvements to the basic advice regime, which was set up by the Financial Services Authority in an attempt to kick-start the sales of stakeholder pensions. The proposals put forward by the Association of British Insurers are based on the belief that the state and the private sector need to work together towards closing the savings gap.
Our view
Anything that helps the consumer to access better advice is good for the consumer.