Retirement Savings to Receive Pensions Bill Boost

The recently published Pensions Bill has promised to change the way millions of employees save for pension funds in the UK. At present, employers are not legally obligated to contribute to employees’ pension schemes, and many choose not to. As a result, there is a growing concern that employees are under-saving for retirement.

This legislation will introduce a ruling whereby employers are required to enrol qualifying employees onto suitable pension schemes, looking to balance the costs and benefits for individuals whilst introducing proportionate costs to employers.

Minister for pensions Steve Webb said:

“This Bill will radically transform the pensions landscape in this country. Millions of people, who currently have little or nothing put by for their retirement will, from 2012, find themselves enrolled in a workplace pension- setting them on the road to a more secure future.”

As well as introducing automatic pension enrolment, the Bill also includes other key measures such as the raising of the state pension age to 66.

A copy of the Pensions Bill can be viewed here.