The Commission estimates that over 12 million working people aged 25 and over are not saving enough for retirement. Of these, 60% are not contributing to a private pension at all. The report emphasised the problems will be more ‘severe’ over the next 15 to 25 years.
A combination of higher taxes and national insurance contributions, a higher retirement age and a push to save more are vital to addressing the pensions’ crisis.
Adair Turner, Commission chairman, said: ‘Society and individuals face a huge challenge, but one that can be overcome.
‘We must now make adjustments which we should ideally have begun 20 to 30 years ago. And to get policy right we need to look comprehensively at all aspects of the problem. Too often in the past, under successive governments, pension policy has addressed specific problems without a clear overall context. This has had unintended and adverse consequences.’
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements