Labour Research, vol.95, Nov. 2006, p.14-15
Author explains the impact of the new age discrimination legislation coming into force on December 1st 2006 on occupational pension schemes.
Financial Times, Nov.16th 2006, p.3
The Pensions Bill will restore the link between earnings and the basic state pension, cut the number of qualifying years before a state pension is paid, abolish contracted out rebates for money purchase pensions and raise the current state pension age of 65 in stages until it reaches 68 in 2046. There will be system of personal retirement savings accounts into which employees will automatically be enrolled. The new state pension package has wide support but there is no real consensus on details.
Department for Work and Pensions
London: TSO, 2006 (Cm 6960)
The pensions reform White Paper, “Security in retirement: towards a new pensions system”, was published on 25 May 2006. It set out a package of reforms for the long-term future of the UK pensions system. This report outlines how the Government proposes to take forward the proposals set out in the White Paper. It discusses the key issues that were raised by respondents during the consultation period and shows how the comments received have impacted on the Government’s proposals. It also summarises the final proposals for reform including:
Women are less able to save than men because of their caring responsibilities and are likely to face a shortfall in their retirement income. Women are five times more likely to take a career break than men and are 17 times more likely to be out of work because they are a housewife or caring for children. Their ability to save for their retirement during these periods is reduced and half of women stop saving altogether when they have children.