British Insurers (ABI) and Trade Union Congress (TUC) make the case for a standing independent retirement savings commission.

NAPF Joanne Segars said the proposed commission would continue the work started a decade ago by the Pensions Commission, chaired by Lord Turner.

"We need a back to basics vision after a flurry of activity in the industry over the last 18 months. Without that vision, we could lose sight of what's important," she said.

The proposed commission would report to parliament and would make recommendations for changes where necessary.

Joanne Segars said it would operate "like a consultancy", gathering information from research and making recommendations.

At the report's launch in London today (Thursday) Joanne Segars was joined by director general of ABI Huw Evans, TUC head of campaigns and communications Nigel Stanley, and Federation of Small Businesses (FSB) policy director Mike Cherry.

"It's an idea whose time has come but we need to be honest that momentum in politics is away from rather than toward," said Huw Evans.

He added that the pensions industry needed to push for a more holistic approach, citing the Pensions Commission in New Zealand as a "healthy part of a democratic framework."

As part of the report, the NAPF published research into how savers feel about the way pensions policy is developed in the UK and the effect this has on their views of pension saving.

"Thanks to automatic enrolment, 5.2 million people are saving in a workplace pension today who were not five years, but our research shows there is a very real discrepancy between this positive progress and how confident people feel about saving for a pension," said Joanne Segars.

"We believe this is a result of pensions policy driven by short-term priorities and political expediency creating a feeling of uncertainty among many employers that contribute to pensions and the savers that rely on them."

According to the NAPF, fewer than one in three (29%) think recent pensions policy changes have made them more confident about the future of their pension savings and 56% of people feel more uncertain about what the future holds for their retirement.

An overwhelming majority of people (84%) agreed that an independent commission should be set up by a future government and a similar proportion said it should be politically neutral (85%), impartial in its recommendations to Government (85%), and should focus not just on pensions but include the wider range of issues that affect both when people retire and the kind of retirement they have (87%).

Eight in ten (83%) were in favour of a permanent commission – one that would last more than one parliamentary term, would endure through future political cycles and provide independent, expert advice to all future UK Governments, regardless of their political make-up.

"Today's report shows the breadth and depth of support that exists for creating an independent retirement savings commission," said Joanne Segars.

"A new standing commission will help make sure the long-term interests of savers, not the short-term interests of politicians, are at the heart of pensions policy.

The latest call for action comes shortly after the Work and Pensions Committee recommended the establishment of an independent committee (Pension Funds Online, March 12).

First published 30.04.2015

Lindsay.sharman@wilmingtonplc.com