Legal & General group chief executive Tim Breedon has backed government ministers Iain Duncan-Smith and Steve Webb’s plans to reform the state pension system.
 
Breedon supported the calls for greater use of risk-sharing and the importance of group risk products in shifting the risk balance from public to private provision.
 
He said, 'As the Budget made clear, there are many middle-income households - on earnings of over £30,000 - who benefit from Department of Works & Pensions spending.

'It feels inevitable that they will bear the brunt of spending cuts. The insurance sector in particular has the capacity to play a role here.'

Breedon said life insurers could fill any gap left by the state in social security provision with group risk products.

'Social Security provision is itself a form of state insurance, with premiums paid through tax rather than to a company like Legal & General,' he said.

'We are talking here about individuals who can afford premiums in good times, and who can therefore avoid becoming future claimants on the state.'

Breedon added, 'We want to help, and we are able to help. I hope that we will now see the beginnings of a programme to deliver that co-operation.'