New pensions bill comes under criticism
by Elaine Frei
The Pensions Policy Institute (PPI) has released a paper that claims a bill currently making its way through parliament will reduce some of the complexities of the nation’s pension system but will not solve its problems. While inequalities between men and women are reduced, individuals would still have to save privately to make up for problems that remain.
Coming in for particular criticism is a proposed personal account. While the PPI praised a proposed personal account that would give many employees access to a low-cost savings plan that would include a contribution from the employer, it was critical of provisions that allow individuals to opt out of the system rather than making savings compulsory. The report also says that the system remains unnecessarily complex, made up of two state pensions, private pensions, and means testing.
The bill also reduces the number of years of employment needed to retire with a full state pension. The reduction allows full benefits at 30 years, rather than the current 39 years of employment for women and 44 years for men.
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