Employers should have the freedom to design a pension which meets the needs of both the company and its employees, pensions expert Alan Pickering told ACEVO members last week.
Pickering, the author of a report on the future of pension provision, told a meeting of charity chief executives at the Institute of Directors that there should be less government prescription of the kind of occupational pension on offer. "Pension scheme design should be done in the workplace and in the marketplace, not in government offices," he said.
By 2030, Pickering predicted a two-pillar system of state pension and mix of workplace and market pensions. The state pension could amount to 25 per cent of average earnings, instead of 15 per cent but would not be available until the age of 70.
The report was commissioned by the Department of Work and Pensions earlier this year.