Next budget 'needs to help pensions'

The next 12 months will be critical for UK pensions, according to one expert.

Joanne Segars, from the National Association of Pension Funds (NAPF), has called on the government to make sure that the last budget of the parliament is one that benefits retirement funds.

She commented that those in power should abandon their "complex and costly proposals" on the tax treatment of pensions contributions, instead opting for the NAPF's alternative method.

The group wants to reduce the yearly allowance of tax-favoured pension contributions from £245,000 to between £45,000 and £60,000.

And Ms Segars stated that by following its methods, the administrators would be able to cut out the illogical and unfair elements of their own proposals - as too many individuals will face a high tax bill just for having a scheme.

Chairman of the NAPF, Lindsay Tomlinson, noted that the rapid decline of defined benefit provision is a serious problem.