Page last updated at 12:26 GMT, Monday, 29 March 2010 13:26 UK

Call for new pensions review body

UK currency
The pension system in the UK is extremely complicated

A pensions group is calling for a new commission to be set up to review the state of the UK's retirement savings.

The National Association of Pension Funds (NAPF), which represents 1,200 pension schemes, said it wants politics to be taken out of pensions.

It said a new commission could suggest long-term changes needed to keep the system sustainable.

It also wants a simpler state pension to bring two million people out of means-testing.

The NAPF wish-list includes a new Foundation Pension that will combine the basic state pension and the state second pension. It would be worth £8,000 a year.

Workplace pensions should also be overhauled, including an increase in the new statutory minimum contribution from employers.

NAPF chief executive Joanne Segars told the BBC that people would consider a later retirement age if they knew they were getting a better deal when they did retire.

Malcolm Small, of the Institute of Directors, said: "The current basic state pension is pitifully inadequate and is amongst the least generous in the developed world. Anything which moves us towards a simpler, fairer, more generous outcome for current and future pensioners is welcome."

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