Research shows positive attitudes towards new pensions plans
December 10, 2008
Back in February I wrote about the pensions reforms due to be implemented in 2012. The new ‘personal accounts’ scheme will automatically enrol workers over the age of 22 and earning at least £5000 into a personal pension account, unless they are part of a qualifying employer pension scheme. People will be able to opt out, but it is hoped that the automatic enrolment will encourage people to continue to save for their retirement. There will be a minimum contribution of 4% of the worker’s salary, and the employer will have to contribute a minimum of 3%, with a further 1% paid in by the Government as tax relief.
Today the Department for Work and Pensions is publishing research that has revealed strong backing for the pensions reforms. 70% of respondents that will be eligible for automatic enrolment thought that they will save for their retirement with the scheme when it is introduced. The research found that people are well aware of how important it is to be in a pension scheme, and look forward to being able to benefit from the new scheme.
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