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Responding to the PLSA’s ‘Hitting the Target’ report, Darren Philp, director of policy at The People’s Pension, said:
“At a time when almost fourteen million workers are at high risk of not having enough to live on in retirement, we should be doing everything possible to help people plan ahead.
“Any clarity that can help people think about what they might need to save for a decent retirement in decades time can only be a good thing. We need a simple target that brings retirement savings to life for people.
“Although auto-enrolment has transformed the pensions landscape, there are still millions of people who aren’t included – because they are too young, too old, they don’t earn enough, or they’re self-employed – and even when contribution rates increase to eight per cent, it won’t be enough.
“We hope this consultation will make a difference in making it easier for people to save for their retirement. It also provides a timely impetus into the debate about bringing more people into auto-enrolment, what level of contributions we want to reach, how quickly we can get there, and whether it’s employers or employees that should pay more.”
Notes to editor:
About The People’s Pension
The People’s Pension is the largest private sector master trust (multi-employer pension scheme) in the UK, with over 3 million members and over 70,000 employers signed up. Run by B&CE, a not for profit company, it offers a simple and low cost automatic enrolment workplace pension solution for employers of any size from any sector. We tweet as @peoplespension.