Pensions Minister, Torsten Bell, has faced renewed calls to establish an independent long-term savings commission.

In an open letter to Bell and other decision-makers across the political spectrum, Nucleus argued that there must be greater political consensus around pensions and long-term savings policy.

The letter marks Nucleus’s third call for a non-departmental government commission, prompted by a lack of progress in the public’s confidence in securing a comfortable retirement and growing uncertainty surrounding the pensions system.

Nucleus suggested recent pension withdrawals caused by pre- and post-budget uncertainty, the proposed extension of inheritance tax to retirement funds, changes to the lifetime allowance rules, and ongoing speculation around changes to ISAs have all contributed to an uncertain policy landscape, potentially discouraging savers from engaging with the system. 

At a time when the government’s most urgent priority is growth, with significant changes to the UK’s pension system being made to achieve this, Nucleus emphasised an “urgent need” to foster greater confidence and knowledge in retirement planning.

The letter said that the case for encouraging long-term savings was clearer than ever, as it would help inject more capital into investment, supporting both individual retirement security and broader economic growth.

It follows the publication of the second study of the Nucleus Retirement Confidence Index, which found that most UK adults were still not confident that they’d have enough money, there was a widespread lack of retirement preparedness.

Nucleus technical services director and author of the letter, Andrew Tully, said it’s “never been clearer” that the UK public needs to start planning and saving for later life much earlier.

He highlighted the importance of support from a pension system that is “consistent, stable and encourages long-term saving.”

“Automatic enrolment was a recommendation by a pensions commission reporting in 2004 and 2005, which has been a great step forward in encouraging more people to save for
retirement,” he continued.

“However, more needs to be done, and we firmly believe that establishing an independent savings commission could again make balanced recommendations to encourage long-term savings while promoting greater consistency in pension and savings rules.

“The government focuses on boosting economic growth and is looking at the role pension savings can play. We firmly believe that their growth agenda will have a greater chance of succeeding if people feel confident in saving and investing for their future,” added Tully.

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