According to the The National Association of Pension Funds (NAPF) 12 million people in the UK are not saving enough for their pensions
The NAPF predicts that there will be a pensions crisis if people continue to save too little for retirement and has called on the government to set up an independent body called the Pensions Standing Commission to review its pensions scheme.
NAPF chief executive, Christine Farnish, said: "For years, successive governments have introduced new pension rules with the best of intentions, but not with the best of results.
"One of the reasons our pensions system is in such poor health is that decisions have too often been taken without the benefit of independent advice aimed at ensuring long term continuity and sustainability. An independent Pensions Standing Commission would provide such advice, based on the depth of understanding and knowledge of its members."
The current Pensions Commission, set up three years ago, will be disbanded this year after it produces its final report. The NAPF says the government needs an independent body to replace it.
The Association of British Insurers also commented on the proposal of the new body.
They said that the body should assess the viability of the system and be able to make recommendations for policy change to the government if the current system is proving to be slow and ineffective.To read more about Life Insurance, click here.
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