Pension reform White Paper will herald better pensions

The biggest shake-up of the state pension system in 60 years will be unveiled by the government today.

The government has already indicated that the long-awaited White Paper will include plans to increase the basic state pension in line with earnings.

The move is likely to be paid for by raising the state pension age, possibly to as high as 69 by 2050.

Other expected reforms include the introduction of a National Pensions Saving Scheme into which workers would be automatically enrolled if they did not have access to a better company scheme.

Individuals would contribute 4% of their salaries to the scheme, employers would pay in 3%, with the government contributing 1%.

The government is also expected to announce measures aimed at making the pensions system fairer for women and carers.

Most of the reforms in the White Paper will be based on proposals put forward by Lord Turner’s Pensions Commission.

Pensions White Paper proposals could cost employers

 

Comments are closed.