Smith said these measures contribute to an individual’s lifetime savings which have become critical in retirement.
“This proposal accelerates and evolves the use of the UK’s automatic enrolment framework to meet the needs of modern society whilst also addressing the lifetime savings challenge,” she added.
Schroders and PMI first announced the initiative in March and outlined three key areas in which UK savers needed support.
This included:
- Financial resilience
- Rising costs of housing
- Long-term retirement needs
Steve Webb, partner at LCP and former pensions minister, said: “The start of a new government is the perfect time to look at the big picture when it comes to pensions and savings.
“Individuals need a mix of short-term and long-term savings, including savings vehicles which will help with house purchase.”
Webb argued that it is vital the government’s pensions review looks broadly across the savings landscape and looks at ideas such as those generated by the LSI.
“The goal must be savings policy framed around the changing needs of individuals over their lifetimes, rather than purely about existing individual financial products,” he said.
sonia.rach@ft.com
