01/08/2011
McFall Launches Inquiry Into Retirement Saving
An Independent Commission spearheaded by former Treasury Select Committee chairman Lord McFall will investigate why the pensions system is failing so many working people, and ask how the UK can radically change its approach to saving for retirement.
The Commission launch comes as a YouGov poll for the National Association of Pension Funds (NAPF) reveals that 84% say our society needs to rethink how it saves for its old age, while 79% say the UK needs a simpler pensions system.
The UK is facing a growing retirement crisis as people live longer but continue to save too little. Today’s poll also shows that 43% of people who aren’t retired say they cannot afford to save for retirement. And over half of those who aren’t retired (55%) are not confident they will have enough money in their old age.
Announcing the Commission Lord McFall said: “Half the workforce is on a collision course with a long retirement spent in poverty. It’s unacceptable that so many will head into old age worried about how they are going to get by.
“A greyer Britain is one of the biggest challenges our society faces and there’s a huge gap in public policy which must be filled. We need to find a sustainable and more universal approach to saving for retirement.”
The former Treasury Chairman added: “While the visionary proposals put forward by Lord Turner’s commission will get more people saving for their retirement from 2012, they are the beginning of the reform process, rather than the end.
“Even with auto-enrolment, up to nine million people risk being left behind, and we have to make it easier for everyone to save more. We will look at different types of pension and savings products, tax incentives, and the regulations faced by employers.
“And there’s a big question about whether those who do pay into a pension are saving enough, or are getting a good deal. If the system changed, could they get a better return?
“The Commission aims to shine a bright light on these issues. To understand the problems we will be reaching out very widely - not just to those in business and the pensions industry, but especially to people trying to save for their retirement.”
Lord McFall will chair the Workplace Retirement Income Commission (WRIC), which has been initiated by the NAPF. The Commission will be fully independent, and will seek out a wide range of views and research before making its findings public in October 2011.
(BMcN/GK)
The Commission launch comes as a YouGov poll for the National Association of Pension Funds (NAPF) reveals that 84% say our society needs to rethink how it saves for its old age, while 79% say the UK needs a simpler pensions system.
The UK is facing a growing retirement crisis as people live longer but continue to save too little. Today’s poll also shows that 43% of people who aren’t retired say they cannot afford to save for retirement. And over half of those who aren’t retired (55%) are not confident they will have enough money in their old age.
Announcing the Commission Lord McFall said: “Half the workforce is on a collision course with a long retirement spent in poverty. It’s unacceptable that so many will head into old age worried about how they are going to get by.
“A greyer Britain is one of the biggest challenges our society faces and there’s a huge gap in public policy which must be filled. We need to find a sustainable and more universal approach to saving for retirement.”
The former Treasury Chairman added: “While the visionary proposals put forward by Lord Turner’s commission will get more people saving for their retirement from 2012, they are the beginning of the reform process, rather than the end.
“Even with auto-enrolment, up to nine million people risk being left behind, and we have to make it easier for everyone to save more. We will look at different types of pension and savings products, tax incentives, and the regulations faced by employers.
“And there’s a big question about whether those who do pay into a pension are saving enough, or are getting a good deal. If the system changed, could they get a better return?
“The Commission aims to shine a bright light on these issues. To understand the problems we will be reaching out very widely - not just to those in business and the pensions industry, but especially to people trying to save for their retirement.”
Lord McFall will chair the Workplace Retirement Income Commission (WRIC), which has been initiated by the NAPF. The Commission will be fully independent, and will seek out a wide range of views and research before making its findings public in October 2011.
(BMcN/GK)
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12 October 2004
Pensions crisis could mean retirement poverty for millions
A massive deficit in the pensions savings could leave nine million people in poverty by the time they retire, according to a report by the Independent Pensions Commission.
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13 January 2011
'End Of The Line' On Retirement Age
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28 November 2014
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Employees should be offered greater flexibility if they decide to work past retirement age, a Equality Commission reports has said. Under a raft of proposals, the Commission called for the abolition of the default retirement age.
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