Pension bill to go before Parliament

Monday, October 24, 2005

A new bill aimed at giving savers more flexibility and simplifying the pensions system is to be put before Parliament this week.

The bill, advocated by shadow works and pensions secretary Sir Malcolm Rifkind, aims to make it easier for young people to save for retirement whilst being able to cope with any sudden changes in their lives.

The Rights of Savers bill is divided into four main sections; the Savings and Retirement account as an alternative to stakeholder pensions, the Retirement Income Fund enabling saving after retirement, and sections about return of capital upon death and flexibility regarding salary deposits into non-work schemes.

"These changes would bring about much needed simplicity in pension products and help restore the savings culture which is currently in crisis in this country," said Sir Malcolm.

"Young people these days want to save, but also want to be prepared for a change in circumstance during their working life."

He added: "A single pension pot would make life much easier."

The new bill to encourage pension saving comes following recent news that few people under the age of thirty were saving for their future and that many pensioners are retiring with personal debts.
track