IMA reaction to Prime Minister's speech on the future of Pensions and Long Term Savings

The IMA today sponsored a major speech by the Prime Minister.

Commenting on the Prime Minister’s speech, Richard Saunders, Chief Executive of the IMA said:

“What the financial services industry needs above all is consistency in government policy to allow us to plan for the long-term. The Prime Minister’s emphasis on consensus is therefore welcome. Such a consensus is emerging around the need to reduce means testing and provide suitable incentives for saving.

“One myth to be dispelled is that saving for retirement is a form of insurance and that life insurance products are the best or only means of saving. In many ways investment funds are at least as good a vehicle. Another myth is that all we need to do is to try and return to defined benefit occupational pension schemes and all will be well. It must be accepted that the future is likely to be one of defined contribution schemes and to plan policy accordingly.

“Finally we need simplified and streamlined tax structures, with appropriate incentives, if people are to be encouraged to save. IMA’s ideas in its publication ‘Investing in Savers’ provide a framework within which these could be developed.”

-Ends-

For further information, please contact:

Helen Stephenson, Communications Officer, IMA, 020 7831 0898

Out of hours contact:

Mona Patel, Head of Communications, IMA, 07834 089332

Notes to Editors:

Today’s speech “The Opportunity Society” was delivered by the Prime Minister at the Beveridge Hall, University of London.

65 Kingsway London WC2B 6TD 

Tel: +44 (0) 20 7831 0898 Fax:+44 (0) 20 7831 9975 

www.investmentuk.org 

Investment Management Association is a company limited by guarantee registered in England and Wales Registered number 4343737.  Registered office as above.