Millions set to miss out on pension support
Nine million people are set to face a “bleak old age” due to problems with the current pensions system.
The BBC reports that a third of the current workforce is set to suffer due to critical problems in the current system, which is “complex, costly and inefficient”. Many people have also failed to save enough for themselves for the future.
The information found in the Workplace Retirement Income Commission argues that workers don’t bother saving for a pension unless they get a better deal.
From 2012 workers will automatically be entered into a company pension scheme unless they were not earning enough or opted out. The review recommended that the government increased the minimum contribution made by these workers, but also made recommendations about charges, annuities, risk and cultural changes.
The document promises to “reinvigorate” the inefficient pensions system, which affects 19 million private sector workers out of the total workforce of 28 million.