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ABI Director General highlights the pensions revolution needed

ABI Director General highlights the pensions revolution needed as the number of people aged over 65 in UK set to exceed the total population of the Netherlands by 2030

The  ABI's Director General Otto Thoresen today highlighted the scale of the UK's pensions challenge as the number of people aged 65 and over in the UK is set to rise by nearly 50% to 16 million by 2030 - equivalent to the total population of the Netherlands.

In a speech today at the annual conference of the Society of Pensions Consultants, ABI's Otto Thoresen said:

"The UK savings agenda is one of the most important policy challenges of our generation. Rising life expectancy means that increasingly people will be drawing pensions for longer than they have spent paying off their mortgage. It is clear that we will need as radical an approach to meeting the in-retirement needs of this new generation as the Turner Commission took towards workplace pension saving ten years ago. "

"With one in five workers thinking that they will never be able to afford to retire we must create a world where people are confident about their financial prospects at retirement, not fearful about it."

With hundreds of people a day now making decisions about their retirement needs, Otto Thoresen stressed:

"Not enough people shop around to get the best annuity. The industry's Retirement Choices Code now makes it easier for savers to make the right decisions providing clear information about their options well ahead of their planned retirement date.

"And the industry is driving down costs, with competition pushing down pension charges to their lowest ever levels. Giving people confidence that they are saving into good value schemes will be crucial to the success of pension reform."

Looking ahead, Otto Thoresen outlined what is needed for savers and pensioners of the future:

"In our recently launched comprehensive review of the UK's retirement needs we will be consulting far and wide about how effective current policy will be at catering for what will be more dynamic and flexible retirement needs, and how current products will stand up to future requirements.

For example, we need a pension tax system that better incentivises people to save, so our principles for a new system do not just reward people for saving, but motivates them to save more."

"Government has started pension reform which will create a new 'auto-enrolment generation', bigger pension pots and an increased need for flexible solutions to meet what will be very different lifestyles in retirement."

Full text of speech 

Last updated 01/07/2016