All British citizens should automatically be given a pension from birth in a bid to tackle the pensions crisis, a leading think-tank has suggested.
In a new report, the Centre for Policy Studies (CPS) recommends that all new-borns should be allocated a so-called ‘Super ISA account’ in which to save money from ‘the cradle to the grave’.
It proposes that the joint savings and pensions account could be run by a default provider such as the Post Office.
The report’s author, Michael Johnson, said the pensions industry was ‘in the last chance saloon of public opinion’ and urged the Government to take action to rectify the problem.
‘The pensions and savings arena is a blizzard of complexity, jargon and meaningless terminology; perfect material for obfuscation and bamboozlement,’ he said.
The CPS’ report sets out a number of other recommendations, including the formation of a compulsory ‘annuities clearing house’. It also suggests that the Chancellor should consider replacing all income tax relief with a single flat rate of 25%, or even 30%.
However, Steve Gay, a director at the Association of British Insurers (ABI), criticised the report, arguing that its proposals are ‘impractical, unworkable or unlikely to achieve their intended outcomes’.