Pensions bills pull in opposite directions, says TUC

Commenting on the two pensions bills announced today (Wednesday) in the Queen’s speech, TUC General Secretary Frances O’Grady said:

“The two pensions bills announced today pull in opposite directions.

“The pooling and risk sharing in Dutch-style not-for-profit pensions offer a better and more predictable retirement income.

“But the Chancellor’s ill-thought through Budget proposals take the collective out of pensions and turn them into individual savings pots, not the regular income that most people want when they retire. It is no surprise that those who think they will make money from this free-for-all are the biggest critics of the new pooled pensions. 

“While we welcome changing the law to allow Dutch-style target pensions, this will not automatically result in any being set up. We need government action to ensure that workers have access to target pensions as the bigger they are, the better they work. Leaving it to the market is never a solution when it comes to pensions.”

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