UK - David Willetts MP, shadow secretary of state for work and pensions has heavily criticised the government, claiming that savings are plummeting.
“Hidden in the small print of Gordon Brown’s project is the projection that the savings ratio for 2002 is expected to be a tiny 3.75%. This is the lowest annual figure since records began in 1963. A nation that is saving so little is heading for poverty in retirement,” he said.
“As if the projections themselves were not enough of a blow, the government continued to claim that contributions to all forms of pension have actually risen. Yet they have still not published last year’s figures for the true value of pension funds, and have actually withdrawn all the figures back to 1999,” he added.
“Given that they know so little about the true extent of pensions saving, it is not surprising that ministers are complacent about the extent of the problem. The budget was silent on measures to support private pension provision, and schemes are shutting daily,” Willetts said.
Willetts comments come at a time when Norwich Union revealed figures that show 11% of defined benefit schemes are expected to close to new and existing members within the next two years (link).
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