Pensions crisis 'on the horizon'
The UK could be facing an imminent pensions crisis, according to one industry practitioner.
Speaking recently, Eurfyl ap Gwilym, economics advisor to Plaid Cymru, said that urgent action needs to be taken to boost the retirement savings of low-paid workers.
During a party conference, the expert said: "One of the early changes made by Gordon Brown as chancellor was to raid pension funds by reducing tax relief by £5 billion per year."
He added that there has been a resultant decline in the membership of private pension schemes, with many workers hoping the state pension will be sufficient to support them after they give up work.
Mr Gwilym went on to recommend a new pension regime under which much of the tax relief is directed at people on average and below average earnings.
Recently, Ian Naismith, head of pensions market development at Scottish Widows, recommended that people who are still working need to plan ahead for their retirement so they can spend their funds the way they want to, rather than simply to pay off debts.
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