Debating the issue of the state pension at the National Association of Pension Funds (NAPF) Annual Conference in Manchester yesterday, David Cule, actuary and principal at Punter Southall argued more needed to be done to improve the state pension, while Adrian Boulding, pensions strategy director at Legal and General (pictured), said this would not be necessary.
Cule told delegates: "There is still a long way to go for state pensions. They are supposed to be simple, fair and affordable - but this is not the case.
"Most people have no idea what their state pension will be, there is massive discontinuity - especially on an international level - around the value of state pensions, and the affordability is a question for politics."
Cule drew on the recent Conservative announcement to increase the retirement age for men from 65 to 66 and further news that, from 2045, the retirement age will have risen to 68. According to research from Punter Southall more than 50% of managers responsible for pensions think the retirement age should be higher than 68 in 2045.
"The first reform I would like to see is more visibility," he added.
Responding to Cule's view, Boulding said: "I think we have a fair system. Given the current climate, further reform to pensions will bring cuts to retirement benefits. Current legislation from the Government [on retirement] is the best settlement we can hope for. It builds solid foundations for employers to build their own schemes on.
"Don't ask for more reforms to state pensions, look at your own challenges to your pension provision."
Following the presentations, the vote was put to the floor, where the vast majority of delegates voted for further reform.
