UK ought to copy Australian pension schemes, says Phoenix boss

The boss of the UK’s biggest pensions and savings business has said Britain’s retirement funds should be more like Australian and Canadian schemes.

Phoenix Group chief executive Andy Briggs called for a shake-up of pensions ahead of Rachel Reeves’s budget next month.

More must be done to encourage investment in the UK and boost the amount being saved by workers, Briggs said.

Plea: Phoenix Group chief exec Andy Briggs (pictured) says more must be done to encourage investment in the UK and boost the amount being saved by workers

His comments came ahead of the budget on October 30, amid fears that the Chancellor will unveil a tax raid on pensions.

Briggs said pension funds should invest in London-listed stocks, and British private equity and infrastructure. 

Citing Australia and Canada as examples for the UK to follow, he said: ‘Other countries incentivise more domestic investment by their savers. We think there’s a real opportunity to do something along those lines.’

That would involve a higher concentration and scale of individual funds like the huge retirement pots operated in Australia and Canada.

Briggs said auto-enrolment contributions of 8pc are not ‘sufficient’ for savers and should be increased to 12 per cent for medium earners.

An Institute for Fiscal Studies (IFS) report yesterday found that up to 40 per cent of private sector employees – or 7m workers – will fall short after they retire.