Mercer promotes long-term pension vehicles
Other forms of savings may be used as an alternative to pensions in future, according to Dick Stratton from London-based consultants Mercer.
Actuary Mr Stratton, head of employee benefits for Mercer, said at a roundtable hosted by pension specialist Pointon York last week that shareplans, Isas, single share group or group personal pensions schemes may be used as a more compelling alternative.
He said: "I have always focused on the individual in the workplace. I have children who are in their thirties. When they start to work, the first thing is to get a deposit, pay off student debt and then save for a house.
"Saving for retirement which is 40 years down the line is not a priority. It is getting people to save for the long-term through a workplace savings scheme with an employer contribution which they can access after five years. It gives people saving some options."
Mr Stratton said it was not about forcing people into pension savings, but about thinking about the ultimate recipient and the things to do in the workplace.
He said: "There will be not be a million IFAs tomorrow – so the best way forward in terms of long-term saving is through the workplace."
Mr Stratton said that the normal retirement age will eventually be when a person can afford to do so.
He said: "Politicians are interested in power and you cannot have pensions in the hands of politicians because they continually change. When governments simplify pensions it either means more costs or someone loses out. Pensions needs a body similar to the Bank of England's monetary policy committee."
Geoffrey Pointon, chairman of self-invested personal pension provider Pointon York, said that he held concerns over the potential plans of Theresa May, shadow secretary of state for work and pensions.
He said: "We got the impression that she was a politician. I do not think that we are going to get a manifesto on pensions and we have to wait and see what they are planning to do when they get into power. Personal Accounts maybe kicked into the grass."
Tom McPhail, head of pensions research for Bristol-based IFA Hargreaves Lansdown, said: "The Conservative Party has said clearly that it will do three things if it gets into power. I am in favour of automatic enrolment as a way of getting people into pensions and we should have continued with the Pensions Commission after Lord Turner of Ecchinswell, chairman of the FSA, had published his findings."
