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Retirement outcomes
Creating an occupational pension scheme that works is in everyone's interest
Furthermore, some paper-based or phone-based processes may be supported for regulatory or inclusion reasons. Therefore a non-digital approach may be used where appropriate.
These reforms, including the creation of personal accounts, will mean that millions more people will have access to a workplace pension scheme into which they will be automatically enrolled. This is a key element of these reforms, many people find making financial decisions about pensions difficult and, without encouragement, often do not make them and can live to regret their indecision. Automatic enrolment will encourage people to make provision for their retirement and not be reliant only on whatever the state safety net can provide. Research from the department of work and pensions has shown that 95 per cent of people will be better off in retirement as a result of saving.
Within the Personal Accounts scheme, the pension saving pot will belong to the individual, so, if their employer chooses to use it, they can contribute to it throughout their working life even if they change jobs regularly or take a career break. Under existing arrangements, seasonal workers, contractors and women who take career breaks do not have the opportunity to build up any private pension saving as many employers require employees to work for a minimum period of time before they are eligible for the company pension.
The Authority's aim is to help facilitate a culture of pension saving among a population that has not previously been engaged and to allow people to take some responsibility for their future. Trust will be at the heart of the Personal Accounts scheme: fair, affordable and sustainable, run in the interests of members. The independent Trustee Corporation set up to run the scheme will make sure of that.
Millions stand to benefit from the successful introduction of the Personal Accounts scheme alone. The scheme is a critical component of the reforms that will fundamentally change the private pensions' landscape. Everyone at Pada is committed to playing a part in ensuring that millions more people can save for a pension and achieve a better outcome in retirement as a result.
Tim Jones is chief executive of the Personal Accounts Delivery Authority
