Darling urged not to miss opportunity to help millions of pension savers

The National Association of Pension Funds (NAPF) on Thursday urged the government not to miss the golden opportunity to help millions of people saving for retirement by ensuring more of the borrowing it needs to balance its book also meets the long-term needs of pension schemes.

The NAPF made the appeal to Chancellor of the Exchequer Alistair Darling, ahead of next week’s Pre-Budget Report.

According to the NAPF, the proposed measure would help members of both defined benefits and defined contribution schemes. They added that those with group personal pensions and group stakeholders pensions could see higher annuity rates as the interest rates increase.

NAPF chief executive Joanna Segars said, “Pensions have been placed under considerable strain during the recession and the Government has a golden opportunity next week to improve the retirement security of millions of workers paying into their company pension.

“It’s an opportunity the Chancellor cannot let pass by.”

Segars explained that members of the defined benefits scheme would greatly benefit if the pension deficits would fall, placing less strain on companies that provide these pension.

At the same time, pension schemes can match their investments with liabilities, she added.

Based on the annual survey conducted by the NAPF, it was found that the pension scheme was the single most effective way the government could help them continue providing a defined benefit pension for their members.