There is one thing that the Coalition can be proud and that is a decent crack at sorting out the UK pensions system. BROADSTONE hopes that Iain Duncan Smith’s comments will end this bout of the jitters, precipitated by David Cameron, which appeared to stop the prospect of a single tier pension.
Actuarial Director John Broome Saunders said "for auto-enrolment to be successful, the end to means testing is crucial so that individuals can understand that a pound saved in a pension scheme will not result in a pound lost from any state provision. We await the "minty green" consultation paper, as promised by Pensions Minister Steve Webb, and hope it gives a strong indication of the government’s thinking."
Broome Saunders went on to comment "introduction of a single tier pension means the end of contracting-out for any open defined benefit schemes, ending the experiment which has caused, and continues to cause, so many headaches for sponsors and trustees."
John Broome Saunders