Simplicity, security and choice:
Working and saving for retirement

Commentary from NIACE
Published: March 2003

NIACE is the national organisation in England and Wales with a broad aim to advance the interests of adult learners and potential learners. Our strategic plan commits us to supporting an increase in the numbers of adults engaged in formal and informal learning and at the same time to widen access to learning opportunities and the acquisition of skills and competences to those who do not traditionally take part in education and training.

NIACE works with all the many interests active in the education and training of adults. It undertakes advocacy and policy work with national, regional and local agencies; provides information and advice to organisations and individuals, carries out research and development projects, organises conferences, seminars and training courses, publishes journals, books and directories, and co-ordinates a major national promotion of education and training for adults through Adult Learners’ Week.

NIACE welcomes the publication of the Green Paper, Simplicity, Security and Choice: working and saving for retirement [TSO The Stationery Office, December 2002, Cm5677] and the opportunity it presents to discuss the future of occupational and private pensions and how the individual assesses and understands them.

NIACE is pleased that its work for the Department for Education and Skills to better understand the financial education needs of older people is contributing to the debate.

For NIACE the key issue has to be how adults are helped to learn about finance, as well as how they obtain the information, advice, guidance and contacts to make the required decisions. These decisions about savings and employment need to be made rationally and confidently.

The processes laid out to achieve this in the Green Paper do provide a basis for development. The identification of the Financial Services Authority as lead agency in developing a market for generic financial advice is welcomed. However, the FSA relationship with financial service providers is a regulatory one. This makes their educational and exploratory work less effective. There needs to be an independent body leading on any financial literacy/education/capacity strategy for the government.

Experience suggests that a body outside of the regulatory framework but with strong support is move likely to achieve the degree of interest and involvement required from all sectors and to develop the skills in relation to public education.

It has been suggested that a White Paper will not be imminent and NIACE encourages the Treasury and DWP to be adventurous and innovative in using the time available to experiment to determine effective ways of pursuing the financial education agenda for adults.

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