The Budget announcement on state pension reform was applauded by the National Association of Pension Funds (NAPF).
NAPF Chief Executive Joanne Segars said:
"This is a turning point for pensions in the UK. Over half a million new pensioners a year will get a simpler and more generous state pension, and reliance on means-tested benefits will be slashed.
“For too long we have put up with one of the most complicated and meanest state pensions in Europe.
“This reform provides a clearer foundation for saving for old age. For the first time in a generation, people will know that it pays to save.
"The NAPF has been at the forefront of fighting for a better state pension system. This is a massive step forward for a cornerstone of the welfare state, and also helps those saving into a workplace pension to plan their retirement more clearly.”
The NAPF proposed its simpler, more generous ‘Foundation Pension’ in March 2010.
A foundation pension will radically simplify the state pension system by combining the basic and state second pension into a single pension above the level of means-tested benefits.
This will ensure that people can save for their retirement with the confidence that they will not have their savings eroded by means-tested benefits.
Joanne Segars is available for interview.
The National Association of Pension Funds 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]