by Brian Wilson pensions consultant

The key test of this report will be whether it will help to solve the "pensions crisis".

On this test, it is only a very small building block to a full solution. The recommendations effectively only tinker around the edges of the substantive problem, which is that while pensions are getting more expensive as people live longer, people and companies are not willing to pay more for pensions.

With a considerable number of people making no provision at all, it is clear that everyone needs to take more responsibility.

The government should provide a tax and regulatory environment that encourages individuals and employers to provide decent pensions.

However, recent governments have instead loaded more costs, taxes and compliance burdens onto pension schemes.

Brian Wilson: Report just 'tinkers around the edge"

Reversing this trend would encourage employers to provide better pensions.

In the case of individuals, as pointed out in the Sandler Report earlier this week, clearer information and simpler products are needed in order to restore confidence in the benefits of long-term saving.

Storing up problems

Individuals need help to save more themselves or to accept that they will have to work for longer.

According to recent research commissioned by Hewitt Bacon & Woodrow, 57% of people claim that they are not concerned about having insufficient income in retirement, with 54% believing that their employer is responsible for ensuring they have an adequate retirement income.

Only 53% of those who are concerned about their pensions were prepared to delay their retirement in order to achieve a higher income.

Employers need to be encouraged to continue to provide good pensions.

According to research recently published by the Association of Consulting Actuaries, only 37% of final salary schemes are open to new members. They are being replaced with low-value defined contribution schemes.

This is storing up a huge potential problem when the new "defined contribution generation" wants to retire in 20 years' time.