WIREDGOV

The CBI commented on a report by the National Audit Office on the regulation of defined contribution (DC) pensions.

Neil Carberry, CBI Director for Employment and Skills, said:

“Enabling people to take ownership of their retirement planning and prepare effectively for old age is vital to ensuring both our public and private finances are sustainable in an ageing society. Tax relief on pension contributions is fundamental to this, and underpins auto-enrolment.

“With DC provision, the size of your pension depends primarily on how much you save. But we also need to support savers to make the right choices on investment – including charges – at the different stages of their life.

“Good scheme governance arrangements, such as transparency, accessible language, and appropriate investment options will help give individuals the information they need.  However, this should remain a matter for scheme providers, as taking a legislative approach would risk further confusing what is already a complex issue.”