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CIPD pensions charter calls for major reform

Ten major organisations have signed the charter calling for better pensions

A new pension charter signed by the CIPD and the Pensions and Lifetime Savings Association (PLSA) is calling for major reform including protecting the value of the state pension during the cost of living crisis and bringing excluded groups into automatic enrolment.

Other signatories include trade association the Association of British Insurers (ABI), charity Age UK and the Chartered Institute of Payroll Professionals (CIPP).

The charter sets objectives for the UK retirement savings system to improve guidance, communications around pensions and promote improved outcomes for pension savers.

The document said: “State, workplace and personal pensions should be adequate, fair and affordable.

It also calls for a pension system that benefits as many people as possible, in particular, traditionally under-pensioned groups including the self-employed, gig economy workers, multiple job holders, low earners, women, and ethnic minority groups.  

The organisations are asking political parties to commit to reforming UK pensions ahead of the next General Election.

Although the recent extension of auto enrolment was a positive innovation more changes are needed, according to Nigel Peaple, director of policy and advocacy at PLSA.

Read more: Pension auto enrolment to be extended to 18-year-olds

He told HR magazine: “Many people are currently not saving enough for a good income at retirement, and reform is needed. 

“Although we have seen some promising developments recently, such as the AE bill [Pensions (Extension of Automatic Enrolment) Bill], there is still more the government can do.

“Therefore, there is no better time than now to join the consensus for building better pensions and for all main UK political parties to commit to pension reform in their general election manifestos.”

Peaple also asked employers to sign the charter.

He added: “These recommendations are mindful not to negatively impact anyone in the short-term but encourage employers to adapt their policies over the next decade to support their workforce.”