Government Failing to Prevent Pensions Crisis - John Hemming MP
October 18, 2005 5:34 PM
John Hemming, MP for Birmingham Yardley, today slammed the Government over new figures showing that pension saving has fallen since 1997 so that more than half of the working age population (56%) are now relying on their partners or the state to provide for them in retirement.
These figures would suggest that in Birmingham Yardley constituency 22,076 people are making no occupational or personal pension contributions.
While 52% of men are not saving, the problem is worse amongst women - 60% of whom are not saving. In Birmingham Yardley constituency this suggests that 12,300 women and 9,776 men are not saving.
John Hemming MP, said:
"This level of under-saving could prove very significant in future years as people become aware of how much they have to survive on in their retirement. Survey after survey shows that people overestimate the level of income they will have in retirement and underestimate how long they will live for.
"What is more disturbing is that the trend is worsening and the Government rather than tackle the challenge face on are making things worse.
"With the withering of the state pension and the spread of means-testing, people are no longer clear if it is worth their while saving or not. And with the growth in personal debt and the struggle to get on the housing ladder, pension saving inevitably takes on a low priority.
"The Government have said they are waiting for Adair Turner's Pension Commission to report at the end of November. But come December the Government must join the growing consensus that the only long term solution is a Citizen's Pension uprated in line with earnings and set at a level which would put an end to means-testing."
ENDS
Notes to editors
The figures adapt working age population figures from the Office of National Statistics from December 2004 to estimate the level of undersaving at a constituency level.
Opportunity for All was published on 17th October and is available at http://www.dwp.gov.uk/mediacentre/pressreleases/2005/oct/ofa7.PDF
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