State pension reform delayed

The National Association of Pension Funds (NAPF) commented on the details of the State Pension Reform announced by the Government today (Thu).

Joanne Segars, NAPF Chief Executive, said:

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“It is good to see a clear direction of travel and confirmation that these important reforms will go ahead. But the time for talking should be over by now. We need to see these reforms become reality.

“Our State pension is one of the most complicated and least generous in Europe. The proposals for a simpler, flat-rate foundation pension are critical to the success of auto-enrolment. People need to know that it pays to save for their old age, and that they won’t see their saving means-tested away.

“The Government’s delay also means that pension schemes could be under more pressure to adapt to the new state pension. Defined benefit pension schemes need time to prepare for the end of contracting out.  The Government must give them enough time and give them clarity as a matter of urgency.”