The Work and Pensions Committee, the group of MPs appointed by the House of Commons to examine the Department for Work and Pensions, has recommended establishing an independent pensions committee to advise on future policies.
A new report by the committee said the independent commission would also examine amendments to existing legislation, such as the pension freedoms due to come into force next month.
"We recommend that the next Government take steps to establish an independent pensions commission at an early date after the general election and certainly by July 2015," the report said.
"If the new Government does not accept that a new pensions commission is required, it will need to tackle the range of issues raised in this report itself, as a matter of urgency."
The National Association of Pensions Funds (NAPF) submitted evidence to the committee in December and fully endorses the establishment of a commission.
Graham Vidler, director of external affairs for the NAPF, said: "There has been growing consensus around the NAPF's recommendation of an independent commission and today's report is important because it shows there is also cross-party support for this idea.
"Our recommendation is based on the belief that a standing independent commission, working alongside government, will help make sure pensions policy is made in savers' interests and for the long-term."
The committee said the commission should consist of a chair and two or three members, but involve a "wide range" of stakeholders including the pensions industry, pension experts, and consumer representatives.
The commission would also aim to address a "lack of engagement" between the general public and the complexities of retirement savings.
The Government has previously been criticised for failing to adequately prepare the public for the upcoming pension freedoms, which remove the need for an annuity by allowing 100 per cent lump sum withdraw from pension pots.
David Sinclair, director of the International Longevity Centre, a UK think-tank on longevity and demographic change, also welcomed the call for an independent commission, claiming it would help the UK out of its current "savings crisis".
"It is critical that whatever future steps are taken [in the pensions industry] are well thought through, based on consultation, with a variety of stakeholders and are appropriately communicated to the general public," he said.
Among the other measures in today's report are a review into the effectiveness of auto-enrolment, the system by which all eligible employees must be automatically enrolled into their company pension, and a review into raising the minimum age to five years below a state pension.
Morten Nilsson, CEO of NOW: Pensions, said the report represented "common sense thinking".
"Auto-enrolment is progressing well, but there's no room for complacency and to ensure it achieves its policy objectives, adequacy of contributions needs to remain a priority," he said.
First published 12.03.2015
Lindsay.sharman@wilmingtonplc.co.uk
