Businesses call on government to create more stability around pensions regulation
Most businesses feel pensions regulation stability should be a priority for government, a report by the Confederation of British Industry (CBI) and Mercer has revealed.
In a survey released today of more than 160 corporate leaders, who between them are responsible for £115bn worth of assets invested in pensions, 79 per cent thought that the government should avoid making further changes to the pensions taxation system.
Businesses already face pensions red tape thanks to recent regime changes, such as the introduction of auto-enrolment. Nearly 70 per cent of survey respondents wanted auto-enrolment administration to be made easier, compared to just 41 per cent when the survey was last run in 2013.
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The study also warned that further shake-ups could de-motivate staff, with 46 per cent of firms concerned that some employees would stop contributing to a pension if more changes occurred.
Neil Carberry at the CBI said: “Businesses want to focus on ensuring employees are making the most of what’s on offer, but there is clear concern about regulatory changes eroding incentives to save, which must be avoided at all costs.”
Mercer boss Fiona Dunsire added: “We support the need for stability. The focus now should be on enabling business to address the challenges of an ageing workforce and the urgent need to save more for retirement.”
In September, the government closed a consultation on whether a flat-rate tax relief should be applied pensions, indicating that further changes could be coming.