Aviva has given its support to the idea of granting early access to pension savings to make them more flexible and attractive to UK savers.

The insurer is proposing a series of reforms to the pension system, including the introduction flat-rate tax relief on pension contributions, a replacement of the Pension Credit with higher basic state pensions, the inclusion of State Pension statements with Personal Accounts, and the introduction of alternative workplace savings plans.

Aviva recently surveyed pensioners in their first year of retirement, and 47 per cent admitted that they wished they had saved more for their retirement. The insurer said that these reforms would encourage a higher rate of savings from employees, and said the abolishment of the Pension Credit would coincide with a £130 basic state pension for all.

Paul Goodwin, head of pensions at Aviva, said: "Aviva wants pensions to be built around the needs of the modern, more flexible workforce, not the workforce that existed 30 years ago. Our proposals will make pensions saving simpler, more attractive and encourage people to save during their working life for the time when they are retired. They simplify pension rules and introduce much-needed flexibility when it comes to accessing money saved into a pension."

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