Work and Pensions Secretary Liz Kendall writes for The Mirror as she launches a Pensions Commission to ‘ensure we have a pension system fit for the next generation of retirees’
Everybody should be able to look forward to retirement with hope, not fear.
This should be the moment when, after all your hard work, you have the time and financial security to do all things you love.
Perhaps it is spending more time with the grandkids, doing some voluntary work, taking up a new hobby or finally going on that holiday of a lifetime. I hope that is the case for Mirror readers who are now claiming their pensions.
But the truth is, that is not the reality facing many people. Unless we act, there is a real risk that tomorrow’s pensioners are set to be poorer than today’s.
Put simply, too many people are not saving enough for retirement. And often it is through no fault of their own.
Take women for example. A man currently approaching retirement may expect a private pension income of just over £200 per week, while a woman may expect just over £100 per week – almost 50% less, before the State Pension.
Or it could be someone who is not earning enough to be able to put money into a pension pot – with only one in four low earners in the private sector saving into a pension.
Over 3 million self-employed people are also not saving into a pension. Almost half of the working age population – some 18m people – are not saving anything towards their retirement. And the simple and stark fact is that those who do, are not saving enough.
READ MORE: Millions not saving enough for retirement as pension shake-up review launched
Twenty years ago the last Labour government introduced reforms which required firms to automatically enrol staff onto a pension scheme.
It was one of the most successful, if unsung, policies in recent times, with eligible employees in workplace pensions rising from 55% to 88%.
Now we need to finish the job. And that means getting today’s generation of workers to start saving into a pension. That’s why today I am reviving the Pensions Commission.
The Commission will ensure we have a pension system fit for the next generation of retirees. One that works harder for savers and ensures future pensioners can look forward to a secure, fruitful retirement. One of hope, not fear.
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