ACA launches retirement income manifesto

16 March 2010

Private sector retirement savings need to be reinvigorated, it has been claimed.

The Association of Consulting Actuaries (ACA) has launched a new manifesto ahead of the general election, which calls on the next government to implement measures to reverse the "alarming decline" in private sector pension savings.

Included in the manifesto is a call to reform annuity rules in order to create "greater flexibility".

According to the ACA, current annuity rules are "too restrictive" as they do not allow customers to alter their levels of income support.

Keith Barton, chairman of the ACA, said: "We are seeking the commitment of all the political parties to a comprehensive strategy designed to address the worrying deterioration in the position of future private sector retirees.

"Without early action, the prospect of increased poverty in retirement may come sooner than many expect."

Concerns about the "worrying deterioration" of the UK retirement income scene could lead to a rise in the popularity of schemes such as equity release.

Through one of these plans, homeowners can receive a welcome financial boost with cash taken from the value of their property.