Nucleus has renewed its call for an independent commission in an open letter to the new pensions minister Torsten Bell.
It has also sent the letter to other decision-makers across the political spectrum.
The letter marks Nucleus’s third call for a non-departmental government commission, prompted by a lack of progress in the public’s confidence in securing a comfortable retirement and growing uncertainty surrounding the pensions system.
Nucelus argued that recent pension withdrawals caused by pre-and post-Budget uncertainty, the proposed extension of inheritance tax (IHT) to include pensions, changes to the lifetime allowance rules, and ongoing speculation around changes to Isas have all contributed to an uncertain policy landscape,
It believes that the case for encouraging long-term savings is “clearer than ever”, as it would help inject more capital into investment, supporting both individual retirement security and broader economic growth.
This open letter follows the publication of the second study of the Nucleus Retirement Confidence Index, the group’s annual survey of consumer sentiment towards retirement.
The report found that the majority of UK adults were still not confident that they will have enough money, alongside a widespread lack of preparedness for retirement and the crucial need for financial education and advice.
Nucleus’ technical services director Andrew Tully, who wrote the open letter, said: “It’s never been clearer that the UK public needs to start planning and saving for later life much, much earlier.
“But they need support from a pensions system that is consistent, stable and encourages long-term saving.
“Automatic enrolment was a recommendation by a Pensions Commission reporting in 2004 and 2005, which has been a great step forward in encouraging more people to save for their retirement.
“However more needs to be done and we firmly believe that establishing an independent savings commission could again make balanced recommendations to encourage long-term savings, while promoting greater consistency in pension and savings rules.
“The government clearly has a focus on boosting economic growth and is looking at the role pension savings can play in this.
“We firmly believe that their growth agenda will have more chance of succeeding if people feel confident to save and invest for their future.”
