He also comments that the State pension should form a strong foundation on which other savings could be built with workplace savings forming an important part.

The research published by the NAPF sets out the decline in workplace pension provision over the last decade. This decline in pension savings is a major concern. If workers do not save for retirement, the implications are a combination of poverty in old age and dependence on means tested benefits in retirement. The Turner Commission provided evidence on the numbers needing some form of means tested benefits in retirement.  It also proposed the planned introduction of auto-enrolment into workplace pensions by 2012 to stop the position worsening.

The current and future state of the public finances and managing the consequences of people living longer and not necessarily healthier lives in their later stages sets some of the context for this review.

Our long term view favours a core State pension and employees that save for their retirement should reap the benefit of their savings.

At the moment, many members’ LGPS pensions replace means tested benefits. For those that opt not to save for their retirement, the taxpayer meets the cost of means tested benefits. An important potential consequence of reducing public sector pension saving is increasing the demand for means tested benefits.

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