Commenting on the Pensions Bill and the ministerial statement on the removal of the Default Retirement Age (DRA) published today, Joanne Segars, Chief Executive of the National Association of Pension Funds (NAPF), said:
“Our ageing population means increases in the State Pension Age are unavoidable. The rise in the State Pension Age to 66 from 2018 to 2020, as implemented in the Pensions Bill, is a sensible move.
“But it is important that people are given enough notice so they can plan their retirement. Some women in their late 50s will see their State Pension Age go up by as much as two years.
“The Government should implement these changes alongside with a reform of the state pension, currently the worst in Europe.
“A more generous and simpler state pension as proposed by the NAPF will make the rise in state pension age fairer. People will know that working for longer means a better pension.
“The 2012 reforms introducing auto-enrolment are a landmark for getting more people saving into a pension.
“The changes brought forward in this Bill will decrease the burden for business while encouraging more people to save.
“Implementation now is key. Employers will have to do a lot of preparation to implement the reforms and have little time, so they need certainty. The NAPF will work closely with the Government to ensure that this will be achieved.”
Commenting on the separate Government announcement today that the Default Retirement Age will be phased out this year, Ms Segars said:
"People are not saving enough for retirement, and as we all live longer we have to start working longer too. Scrapping the milestone of 65 makes it easier for people to keep earning for a few more years, which will help them increase their savings.”
Notes to Editors:
1. Joanne Segars is available for interview.
2. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683. [email protected]
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446 [email protected]