The UK government should “stop tinkering” with pension reforms and instead tackle complacent savings behaviour among working age people, the Association of Consulting Actuaries has suggested.

Speaking at ACA’s Chairman’s dinner, ACA chairman Bob Scott explained that there can be a “feeling of complacency among people who have been auto-enrolled,” who think their retirement savings are then settled. Increasing minimum contributions to around 16 per cent of qualifying earnings could help to reduce pensions “complacency”, Scott said.

Scott also noted that there is a “general confusion as to which savings vehicle to use”, explaining that the new government must work to encourage greater savings behaviour and make options clearer.

“The ACA, with a view to facilitating decent pension provision for the UK’s working population, has long advocated less prescription, greater flexibility and fewer changes in the complex rules that govern pensions,” he said.

In its manifesto, ACA encouraged the need to set out a future vision for the development of auto-enrolment, building on its success and looking to extend to those who are currently excluded in the “gig” economy.

In addition, Scott highlighted ACA’s proposals for the government to implement the recommendations of the Cridland review around the state pension age and scrapping the triple lock from 2020. As well as these, ACA suggested the replacement of the lifetime allowance and tapered allowance for a clear indication of tax reforms, if any, over the next five years.

Aside from these, however, Scott stated: “Most of all, we would ask that the Government stops tinkering. Constant change may create plenty of work for pensions professionals but it does little to encourage employers to provide good pensions or to incentivise individuals to save for their later years.

“The ACA has said many times before that pensions and long-term savings are too important to be left to the mercy of short-term political whim. But with Brexit negotiations set to dominate parliamentary business for the next 2 years and possibly longer, there won’t be much space in the legislative timetable for pensions. So, is there a chance that we will get our wish at last?

“A period of stability and consolidation for the pensions industry with little or no new legislation? I’d like to think so but perhaps I am just being too optimistic?,” Scott concluded.

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