Government pension plan aims to 'tackle savings inertia'
A new white paper has been launched by the government outlining how it intends to tackle the inertia among UK consumers about saving for retirement.
Following a consultation and report into the attitudes of people towards pension schemes, the government has concluded there is strong support for an initiative such as the use of Personal Accounts.
Indeed, the Department for Work and Pensions claims 84 per cent of people are in favour of the ideas behind Personal Accounts and 68 per cent are believed to support the introduction of auto-enrolment.
"We know that people are far more likely to save for their retirement if they have access to a simple, low cost pension with a contribution from their employer. That is exactly what Personal Accounts will provide," said the secretary of state for work and pensions John Hutton.
"The details of the new scheme we are setting out today can help people overcome the inertia that holds people back from saving while taking important steps to protect existing pension provision," he added.
The National Association of Pension Funds is among a number of prominent organisations that has come out in support of the government's latest reform proposals.
Related Stories
This news is available in 