The UK can have a much better system of collective pension savings, said David Pitt-Watson (pictured), author of Building the consensus for a people’s pension in Britain, during an interview with Clare Bettelley, associate editor at Employee Benefits.
Pitt-Watson led a session titled ‘What should a best practice pension system look like?’ on 1 February 2013 at the Employee Benefits Pensions and Workplace Savings Summit.
He added: “Auto-enrolment is a very positive policy, but there are better systems of pensions than the individual [defined contribution] pensions that auto-enrolment offers, and we should be working towards those.
“The auto-enrolment schemes will hopefully get everyone saving. The first thing we need to do is make sure that works.
“But I think you should be introducing the possibility of employers, particularly larger employers, being able to think about how they can create collective pots, because they will simply give people better returns, better pensions.”