Nucleus has written an open letter to the pensions minister urging for a long-term savings commission to review the pensions regime.
The letter, sent this morning (January 29), said at a time of volatile markets and the ongoing cost of living crisis people need support in making financial decisions.
Nucleus said while auto-enrolment means more people have savings, they generally do not have enough for a comfortable retirement.
Andrew Tully, technical director at Nucleus, wrote the letter to pensions minister Paul Maynard.
He said: “Our research suggests constant tinkering and changes to rules has a negative impact on confidence.
"Setting up an independent long-term savings commission to depoliticise and develop proposals for pension and savings policy would bring much needed consistency and stability, which would deliver greater levels of trust and engagement.”
It comes two months after Nucleus published its Retirement Confidence Index which surveyed more than 2,000 people.
It found retirement confidence is expected to decrease in the coming years and called for action from the industry, policy makers and consumers, around pensions legislation, financial education and communication.
Now, Nucleus wants to see a non-departmental public body which would review the regime for UK pensions and long-term savings and make recommendations.
The letter said: “In these uncertain times, with widespread cost-of-living concerns and volatile markets, it’s more important than ever for people to feel confident about their financial future.”
It added: “To make meaningful positive change, our research highlights we need more people who save more into their pension, to understand why they are saving and what for, and are empowered to save in an environment of trust and stability.
“It’s for this reason that we believe the creation of an independent long-term savings commission is needed.
“The aim for this non-departmental public body would be to review the regime for UK pensions and long-term savings and make recommendations accordingly.”
tara.o'connor@ft.com
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