Friends Provident pensions should be incentivised

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Friends Provident pensions should be incentivised

Wed 11th May 2005

People saving for pensions including Friends Provident pensions should be permitted to act from incentive rather than compulsion, Friends Provident has said.

Jeremy Ward, head of marketing for Friends Provident pensions, believes pensions should be incentivised, with pension investment to be a matter of choice.

"We do not favour compulsion but an incentivised approach which encourages people to sign up voluntarily to pension investment and encourages employers to provide decent pension provision for employees," he stated.

Mr Ward's comments came following reports that the new work and pensions secretary, David Blunkett, had not ruled out compulsory pension schemes.

While he disagreed with the idea of compulsory schemes, Mr Ward said it was nevertheless "heartening" that pensions were remaining high on the government agenda.

"That has to be good news in helping to address the serious pension issues that we face," he said.

Friends Provident has released research showing that more than half a million people in the UK could experience a shortfall of £10,000 in their pension for each year of retirement.

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