A total of 11 pensions industry organisations have backed a new Better Pensions Charter calling for major reforms to improve pension outcomes, including setting clear objectives for the UK retirement savings system.

The new charter has received backing from across the pensions industry, as well as employer and consumer representative groups, who are lobbying for positive change in pensions.

Initial signatories include: Association of British Insurers (ABI), Age UK, Association of Professional Pension Trustees (APPT), Association of Consulting Actuaries (ACA), Chartered Institute of Personnel and Development (CIPD), Chartered Institute of Payroll Professionals (CIPP), LCP, the Pensions Administration Standards Association (Pasa), the PLSA, the People’s Partnership and The Investing and Saving Alliance (Tisa).

The signatories are also calling on the main political parties, as they prepare their manifestos for the next general election, to commit to reforming UK pensions in line with the propels outlined in the charter.

In particular, it urged political parties to set clear objectives for the UK pension system, arguing that taken together, state, workplace and personal pensions, should be adequate, fair and affordable.

It also stressed the need a universal state pension that protects everyone from poverty and covers all basic needs as it plays an essential role in the pension provision of most citizens, arguing that its current value should be at least maintained.

In addition to this, the charter emphasised the need for a retirement saving system that benefits as many people as possible, in particular, traditional under pensioned groups including: the self-employed, gig economy workers, multiple job holders, low earners, women, and ethnic minority groups.

Commenting on the charter, PLSA director policy and advocacy, Nigel Peaple, stated: “It’s almost 20 years since the Pensions Commission proposed reforms to the UK pension system.

"Although, as a result of those reforms, more people are eligible for the state pension and are saving for retirement in the workplace, too many are falling far short of being on track for a good retirement income.

“We, and the other signatories to this charter, are asking that all the main UK political parties commit to putting pension reform in their general election manifestos so as to ensure that everyone in the UK has a good income in retirement.”

Adding to this, People’s Partnership director of policy, Phil Brown, stated: "As an organisation that is committed to helping people build stronger financial futures, we are delighted to support the charter for better pensions.

"We’ve long called for there to be a consensus on what the objectives should be for the UK’s pensions system and this plan is a significant step towards achieving this. Automatic enrolment has been a tremendous success but it can be improved and widened to even more people, especially the lower paid.

“It’s also vital that pensions are made fairer and that the gaps which mean that women and some ethnic minorities are worse off in retirement are closed."

Tisa head of retirement, Renny Biggins, also acknowledged that despite the success of auto-enrolment, the current minimum contribution levels are not enough to ensure good retirement outcomes for most individuals and households.

"That is why we support these proposals that put pension adequacy at the heart of all policy debates and changes," he continued.

“As with other areas of reform, we believe that at times, the government and the regulators should adopt a more joined-up approach to change, and we as an industry should do the same.

"This pensions charter is a positive step in that direction and, allows us to present a unified and clear message on the key areas of focus for future policy creation."

LCP head of DC practice, Laura Myers: "This important charter sets out the fundamental things that we support to ensure sure that our industry helps people to save at the right levels to enjoy a good quality of life in retirement.

"The PLSA has been leading the way with initiatives like the retirement living standards which have set fantastic guidelines around what constitutes a comfortable retirement and now this charter will build consensus to ensure we as an industry come together to ensure our savers get there. "

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