A new report published today has called for a reform of pension regulations to allow us to save into a collective pension here in Britain, much like the ones that are so successful in places like Holland and Denmark.
The Royal Society for the encouragement of Arts (RSA) published a report that believes we could save 40% more for our retirement if we were allowed to save into collective schemes. A collective scheme allows fund managers to take bigger risks, with a larger collective investment pool of money, and is cheaper to administer.
The RSA report goes on to show how a typical Dutch saver could invest the same amount as a typical British saver, but expect 50% more money in their retirement as a result of saving into a collective scheme, currently not allowed here.
Because the schemes feature many thousands of people they typically benefit from much lower administration charges and bigger returns due to the size of investment.
The Trade Unions Congress, the national trade union centre in the UK who represent the vast majority of organised workers, welcomed the report.
TUC general secretary Brendan Barber said: “This is a very important report that reveals not just how poor the majority of private sector workplace pensions now are, but that it is perfectly possible to make them significantly better.”