News
January 2008
Act now to avoid the nightmare of a future pensions crisis
Work and Pensions Secretary, Peter Hain, has said that individuals must start taking greater responsibility for their financial future in order to avoid a 'pensions nightmare' in later years.
Speaking ahead of the second reading of the Pensions Bill, which will automatically enrol employees into a national scheme with an employer contribution of at least 3 per cent, Peter Hain said action was vital so that future generations of workers were not left struggling to pay for an ageing population.
'One hundred years ago few people lived long enough to collect a State Pension - on average men only survived to age 49 and women to 53. Today, one in four babies is expected to live to 100,' he said.
'Around three quarters of people say they will need more than the State Pension to live on. But actions do not match words - only around four in 10 working age people are saving into a private pension.'
Peter Hain said the state, individuals and employers 'all share in the responsibility' to avert a crisis.