The National Association of Pension Funds (NAPF) reacted to the Government’s announcement today that many public sector workers will pay more into their pensions.
Joanne Segars, NAPF Chief Executive, said:
“Low paid workers will be protected and the increases will only be phased in progressively, so these points should be welcomed.
“But we're worried that a hike in contributions could provoke some public sector workers to quit their pensions, especially at a time of pay freezes and rising living costs.
“While many workers might resent the increases, we’d urge people to do all they can to stay in their pensions. Public sector pensions pay out at a relatively generous level and contain some strong guarantees.
“Reform of public sector pensions is necessary to put them on a sustainable footing. But the Government needs to tread carefully to avoid creating new problems around undersaving for retirement.
“14 million people aren’t saving anything into a workplace pension. It’s a huge issue for our society, and we can’t make it worse. All workers deserve a good pension, whether public or private sector."
* The NAPF has four million public sector pension holders among its member pension schemes.
Notes to Editors:
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.
Paul Platt, Head of Media, NAPF, 020 7601 1717 or 07917 506 683