Pensions News

Hain: Pensions action future generations - 07/01/2008

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Peter Hain has asserted that the protection of future generations necessitates swift action on pensions.

Speaking as the Pensions Bill proposes automatic enrolment into workplace pensions with employer contributions of at least three per cent from 2012, Mr Hain highlighted the move's radicalism.

Claiming that the bill is one of the most substantial since the first state pension was introduced in 1908, Mr Hain stated that nothing less would ensure the safety of future workers in the UK.

He noted that the average life expectancy has risen for both men and women, with one in four newly born babies forecast to live until the age of 100.

"The state, individuals and employers all share in the responsibility to avert such a crisis - so we must act decisively now to renew the social contract between us," he said.

According to Mr Hain, the Pensions Act 2007 is valuable for its restoration of the earnings link to the basic state pension from 2012, as well as forming a basis for the extension of coverage from 2010.

The Pensions Regulator is to oversee the transition to the new personal accounts system, monitoring the overall implementation and ensuring employers meet their automatic enrolment obligations.

© Adfero

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