Industry experts have called on the government to launch a long-term savings commission as a way to end the cycle of short-term thinking and the politicising of pensions.

A report by the Lang Cat, commissioned by People’s Partnership, urged that an independent long-term savings commission was needed to help the government and other stakeholders drive reform.

The report, published today (February 13), said this commission needs to establish a consensus on the purpose of the UK’s pension system, provide continuity despite changes in government and carry out its own research.

For example, the Lang Cat said no data is being collected on ordinary savers and whether they are making good decisions about their pensions. Without this data, there can be no interventions.

The report, titled ‘How do you solve a problem like DC pensions?, comes after a series of in-depth interviews with figures from the pensions industry to build an overview of what the future of pensions should look like.

Tom McPhail, director of public affairs at the Lang Cat, said: “In spite of major reforms over the past 15 years, we still have a pension system that lacks a coherent strategic purpose.

“Initiatives to address individual aspects of the system have been fragmented and lack consensus.

“People aren’t saving enough and they’re not able to engage effectively with the key decisions they need to take.”

McPhail explained there is a “proliferation of small pension pots” that many people do not even realise they have.

He said these are major issues that were not being addressed and argued the only realistic way to tackle them was by setting up an independent long-term savings commission that would make recommendations for all savers.

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