10 May 2002

Darling Aims to Make Pensions Popular

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Alistair Darling today promised to make pensions truly popular. Speaking at the NAPF conference in Brighton he said that with the right safeguards a range of relatively straightforward products, with simple health warnings, could be produced for the mass market. Mr Darling, Work and Pensions Secretary, said:

'We live in an age when consumers expect to buy things without much fuss or confusion.

'It is clear to me that when people find it too difficult or too confusing to understand a pension, the pendulum has swung too far in favour of regulation and complexity.

'People should have a choice. If people want a simple product, they can buy it direct, straight from the Internet, or over the phone. But if they want something more complex, they will be able to get the advice they need.

'We need to be able to provide savers with the options they want, with the right safeguards, with the minimum fuss.'

Mr Darling also set out how he wants to make it easier for employers to maintain or start a pension scheme. The Government is looking to encourage saving and ensure that more money goes into pension pots not on red tape.

Mr Darling continued:

'We are looking at whether we've got the level of regulation right and whether we've got the right drivers within the market place to encourage choice and competition.

'That is why last year the Government commissioned three reviews. Alan Pickering is looking at ways to strip away unnecessary regulation, Ron Sandler is looking at competitive forces across the retail investment industry and the Inland Revenue are considering whether to simplify the tax regime for pensions.

'After we have received these reports in the summer we will set out the Government's proposals in the autumn which will make significant improvements to increase saving and peoples' incomes in retirement.'

© Department for Work and Pensions