Public supports personal pension reform

The Association of British Insurer's (ABI') report into UK saving has revealed public support for key reforms to state and personal pensions.

The report, 'The State of the Nation's Savings 2004', found that 47 per cent of the public believe that extra spending on state pension provision should help those who cannot afford to save and encourage people who can save to do so.

Only one in four support alternative proposals for a higher basic state pension for everyone.

A growing percentage of the public believe that individuals must take the main responsibility for providing for their retirement income - up to 42 per cent from 35 per cent a year ago.

At its Saver Summit 2004, the ABI are set to publish policy proposals that build on this public support for change and respond to the challenge for new thinking set out in the Pensions Commission's recent report.

Joanne Segars, the ABI's head of pensions, said: "These findings will confound those who argue that the public does not accept the severity of the pensions challenge or is unwilling to face the consequences.

"The ABI's proposals, supported by the views of savers and non-savers alike, provide an effective alternative to higher and higher public expenditure on the one hand or compulsion on the other."