'Act now to save pensions'

CALLS on the Government for urgent action to restore public confidence in pensions will be made tomorrow at the Labour Conference in Bournemouth by the insurance industry.

At a meeting organised by the Association of British Insurers, director-general Mary Francis will present a ten-point plan aimed at closing the £27bn savings gap - the difference between what people are saving and what they should be saving.

She will also reveal the results of research that shows only 4% of those interviewed felt 'very confident' that they will have enough money to live comfortably when they retire.

The insurers want immediate reform of the state pension and are urging the Government to look again at pension credits, which will be introduced this week. The ABI says the credit is a disincentive for people to save for retirement.

Francis said: 'It is about time that pensions ceased to be a political football and that a consensus was reached about how to tackle one of Britain's most pressing social issues.'