The National Association of Pension Funds has described the government's proposed national pensions savings scheme as a revolutionary step forward.
It comes after the government recently published a white paper, entitled Personal Accounts: a new way to save?, that outlined plans for a new pensions initiative to be launched in 2012.
Under the proposals, every full-time employee who is not currently enrolled in a private pension scheme would be brought into the government-backed scheme, although they will be given the opportunity to opt out.
Then, part of their salary would be automatically deducted and additional pension contributions would be made by the employer and the government in the form of tax relief.
Speaking at the association's investment conference in Edinburgh, Joanne Segars, chief executive of the association, welcomed the idea behind the pension scheme.
"The government's reform package, auto-enrolment and mandatory employer contributions into either the best of today's workplace pensions or personal accounts, will revolutionise pension saving," she said.
Currently, people looking to supplement a basic state pension may wish to consider options such as setting up a private pension or a company pension.
Personal accounts will revolutionise pensions, industry body claims
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Personal accounts will revolutionise pensions, industry body claims
Fri, 16 Mar 2007
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