“Reinvigorating Workplace Pensions”

Thursday 22nd November 2012 Written Statements

[The Minister of State, Department for Work and Pensions (Steve Webb)]

Later today I will publish the Command Paper “Reinvigorating Workplace Pensions”. Building on our coalition agreement commitment, this document sets out our strategy for putting in place arrangements that result in the provision of high quality pension schemes people can trust and take confidence in.

We need pensions that are affordable for employers and attractive to employees to ensure that automatic enrolment succeeds for the millions of new savers it creates. Our reinvigoration strategy covers a broad set of issues from how we increase the amount people are saving to how we ensure those savings go into high quality schemes that give people the income they expect in retirement.

Research shows people want more certainty in pension saving. We have responded by encouraging more risk-sharing through the development of defined ambition pensions, outlined in this plan, and are working closely with the pensions industry to encourage innovation and explore possible options and models.

Promoting scheme quality is also critical. Savers need to be confident they are putting their money into stable, well-run, customer-focused schemes that will give them the income they expect in retirement. This strategy sets out the issues we are examining to achieve this, such as scale, charges and the regulatory regime.

Part of the reason people lack confidence in pensions is they find them confusing, so we are looking at ways to increase engagement through improved information, and are considering putting in place simple mechanisms to support employers and consumers with scheme choice.

We will be working closely with consumers, employers and the pensions industry as we develop the plans set out in this strategy.

The document will also be available later today on the Department’s website.