New pensions could almost double

DWPThe next generation of employees could almost double their pension provision due to plans to automatically enrol up to nine million people into workplace schemes, Government research has found.

Median average private pension income could rise to between £153 and £195 a week by 2070 as a result of automatic enrolment, predicts the Department for Work and Pensions (DWP).
Private pension incomes would reach only between £86 and £106 by this period if the reforms were not put in place, said the Workplace Pension Reforms: Baseline Evaluation Report.

Automatic enrolment, which aims to tackle the pension savings crisis, begins this October with larger firms.

Private sector pension participation has fallen from 7.9 million people (55%) in schemes in 2003 to 5.8 million (42%) by last year.

TUC general secretary Brendan Barber said: "With two-thirds of employees not saving into an employer-backed pension scheme, auto-enrolment into workplace pensions cannot come soon enough.

"We desperately need to see more people saving into better pension schemes from an earlier age if we are to address Britain's growing old age poverty crisis.

"Auto-enrolment will begin to address all of these challenges."

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