The Pre-Budget Report, due to be revealed later today, needs to address long term pension saving, AXA has claimed.
According to AXA, "savings are important for the long-term health of the economy, but the ability to get credit and the risk of running up debt is arguably far easier for the average consumer than saving for their future."
As a result, AXA believes it is essential that people recognise the benefits of saving for the long term, especially as the state pension will not be enough for most people to retire on.
Suggestions made by AXA to help combat this issue include abolishing the pension annuity 'Age 75', which forces retirees to secure their pension income by then. Doing so could take the pressure of the annuity market at a time when they are failing to provide high levels of income.
Other suggestions include creating a consistent approach to savings policy that "favours certainty and clarity for investors, providing a stable and consistent approach to the taxation environment of pensions and savings products."
AXA also suggests that the Government should incentivise employers in the form of tax or National Insurance breaks, to promote financial education in the workplace.
Commenting, Mike Kellard CEO at AXA Wealth said: "AXA Wealth believes that if the points in this manifesto can be addressed, individuals will be encouraged to save now for their future and will help to restore confidence in the industry. This way, the future of long term savings will be much improved."
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