Yet every year hundreds of thousands of ordinary savers are being short-changed to the tune of a billion pounds because of a private pensions system that is rigged against them while this government refuses to act.
After a lifetime of work, hundreds of thousands of people a year convert their hard-earned private pension pot into a guaranteed retirement income in the form of an annuity. Yet far too many people are seeing their savings diminishing as they retire because of the broken pensions market.
The annuities market is complex, confusing and uncompetitive. This suits the pensions industry at the expense of savers, who are confronted with an overwhelming array of products and offers to choose from. The complexity of the market leads to at least half of those buying an annuity taking up an offer from their existing pensions provider, without being told what other deals are available to them.
The result is an astonishing £1 billion lost every year by savers who are missing out on the best annuity deal.
We would introduce a requirement for all savers to be referred to an independent broker to make sure they get the best deal when they turn their pension savings into retirement income. With the help of an independent broker, the average saver could be £400 a year better off.
Labour will also crack down on rip-off pension fees and charges. The government's own figures show savers could be losing £230,000 from their lifetime savings through excessive fees and charges. Yet after promising a "full frontal assault" on charges, the government has kicked the issue into the long grass. A Labour government would introduce 'a fair cap of at least 0.75% to end the rip off fees and charges enabling people to keep more of their hard-earned savings.
The broken pensions market is a clear example of how the cost-of-living crisis is affecting middle-income households, as well as the poorest. Things are getting tougher for millions of middle-class families who never dreamt that life would be such a struggle. Their worries about whether they will have enough to retire on, as well helping their children get onto the housing ladder, are part of what now risks undermining our confidence as a country.
David Cameron's refusal to intervene in the pensions market is a slap in the face to people who work hard, save, always do right thing and ask little from government. One Nation Labour will fight their corner, bringing in reforms to tackle powerful vested interests in energy, banking and pensions to help consumers get the best deal.
We believe if you work hard and save for a pension you deserve a decent income in retirement. If David Cameron won't tackle the scandal of the missing £1billion in private pension savings, then a Labour government will.