NAPF asks chancellor for pension budget

Tuesday, March 2 2010

The chancellor should provide a pension allowance in the upcoming budget, according to the National Association of Pension Funds (NAPF).

Spokesperson for the body Mark Brooks commented on the collapse of Reader's Digest UK (RDA UK), which some have blamed on its pension burden.

Mr Brooks stated that many other schemes have also been suffering similar pressures.

"We have put forward proposals which would be to abandon their unworkable tax plan and also look at ensuring that there is enough long term funding available for pension funds," he noted.

Last month the Reader's Digest Association said RDA UK had entered into administration after the UK Pensions Regulator said it would not support a pensions agreement within the firm.

Mr Brooks explained that recession costs have hit many companies and this has altered workplace pension plans.

But a budget for pensions could help the issue, he added.

Prudential commissioned a survey last month which found that 32 per cent of UK workers over 55 thought they would never be able to afford to take complete retirement.