L&G calls for savings kick-start

LEGAL & General chief executive David Prosser today urged the Government to take decisive action to get Britain saving again.

Prosser said this week's damning Turner Report, which put the shortfall in pensions savings at £57bn a year, was of little surprise to the industry.

He added: 'It's interesting to study the iceberg through binoculars but the iceberg is getting closer. We ought to start looking at what we should be doing.'

Prosser has long argued the Government needs to put much greater incentives in place to encourage people to put money into savings plans.

He said there was a 70% take-up rate by staff in group pensions sold by L&G when companies match the contributions put in by employees.

His comments came as L&G opened the life insurance reporting season by posting a 12% rise in new business to £759m for the nine months to September.

Total UK new life and pension business was up by 11% in the third quarter.

Prosser said: 'We will look good against the rest of the market.'

The Government is widely expected to welcome proposals from the Treasury Select Committee on how to restore confidence in the long-term savings sector today.

MPs have called for a risk-rating on products and a study of how to improve customer service.

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