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11/06/2004
Changes needed to alleviate 'pensions crisis', says TUC
Large numbers of young people face poverty in retirement unless big changes are made to pensions law and young people wake up to their pensions plight, the TUC has warned today.
Government figures show that less than half of those under 30 are currently saving for a pension, yet 62% of those born in the 1950s and 73% of those born in the 1960s started a pension before they were 30.
Yet as people now live longer people should be starting to save earlier, and putting by more each year, if they are to retire at a reasonable age with an adequate pension. Someone who starts to save £100 a month at age 20 can look forward to a total pension of just over £142 a week if they retire at 65 on best industry estimates, but if they wait until they are 35 then it falls to £71 (not including state pension), the TUC said.
Young people are failing to contribute to pensions for a number of reasons – the most important has been the retreat of employers from contributing to a decent occupational pension, says the TUC.
Pensions scandals and mis-selling have made young people suspicious of pensions companies, and young people find pensions complex and difficult. Too much choice of private provision puts people off saving according to opinion research, said the TUC.
General Secretary Brendan Barber said: "Young people have started a slow pensions timebomb. Unless they take out pensions a generation faces poverty in old age, dependent on the generosity of whatever government is in power. We used to think that slowly but surely we were all getting more prosperous. That’s not likely to be true in retirement unless these trends change.
"The key change that needs to be made is to compel employers to make a proper contribution to pensions. All the evidence shows that employees understand occupational schemes and will join a work based pension scheme, where they find making their own arrangements expensive and confusing."
The TUC's 'Pay Up For Pensions March and Rally' will take place on Saturday, June 19, in London.
(gmcg)
Government figures show that less than half of those under 30 are currently saving for a pension, yet 62% of those born in the 1950s and 73% of those born in the 1960s started a pension before they were 30.
Yet as people now live longer people should be starting to save earlier, and putting by more each year, if they are to retire at a reasonable age with an adequate pension. Someone who starts to save £100 a month at age 20 can look forward to a total pension of just over £142 a week if they retire at 65 on best industry estimates, but if they wait until they are 35 then it falls to £71 (not including state pension), the TUC said.
Young people are failing to contribute to pensions for a number of reasons – the most important has been the retreat of employers from contributing to a decent occupational pension, says the TUC.
Pensions scandals and mis-selling have made young people suspicious of pensions companies, and young people find pensions complex and difficult. Too much choice of private provision puts people off saving according to opinion research, said the TUC.
General Secretary Brendan Barber said: "Young people have started a slow pensions timebomb. Unless they take out pensions a generation faces poverty in old age, dependent on the generosity of whatever government is in power. We used to think that slowly but surely we were all getting more prosperous. That’s not likely to be true in retirement unless these trends change.
"The key change that needs to be made is to compel employers to make a proper contribution to pensions. All the evidence shows that employees understand occupational schemes and will join a work based pension scheme, where they find making their own arrangements expensive and confusing."
The TUC's 'Pay Up For Pensions March and Rally' will take place on Saturday, June 19, in London.
(gmcg)
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07 September 2004
Pensions Secretary quits government
The Work and Pensions Secretary Andrew Smith has resigned from the Cabinet, saying he quit in order to commit more time to his constituency and spend more time with his family.
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28 October 2003
'No Nest Egg' youth have no confidence in pensions: report
The government must go back to the drawing board and design "simple, affordable and secure savings solutions" for young people if it expects to restore public confidence and sort out the pensions crisis, according to the National Consumer Council (NCC).
'No Nest Egg' youth have no confidence in pensions: report
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24 November 2005
TUC raps bosses 'luxury' pensions
The TUC has rapped the top rate pensions paid to company directors, while workers are asked to work longer for smaller pensions. A TUC report claimed that 8 out of 10 of the UK's top companies provide directors with pensions that can pay out in full at 60 and are worth, on average, 26 times those of most employees.
TUC raps bosses 'luxury' pensions
The TUC has rapped the top rate pensions paid to company directors, while workers are asked to work longer for smaller pensions. A TUC report claimed that 8 out of 10 of the UK's top companies provide directors with pensions that can pay out in full at 60 and are worth, on average, 26 times those of most employees.
13 August 2004
Stakeholder pensions are failing low-pay workers, TUC claim
Low paid workers are not getting the benefit of stakeholder pensions as employers are not contributing enough to make any headway in staving off Britain's looming pensions crisis, the Trades Union Congress (TUC) has claimed.
Stakeholder pensions are failing low-pay workers, TUC claim
Low paid workers are not getting the benefit of stakeholder pensions as employers are not contributing enough to make any headway in staving off Britain's looming pensions crisis, the Trades Union Congress (TUC) has claimed.
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