Access to Pensions Savings for All Workers

Social Development Minister Margaret Ritchie had her thoughts firmly on the future during debate on the Final Stage of the Pensions (No. 2) Bill in the Assembly this week.  

She believes that more must be done to encourage people to better prepare for retirement and has put in place measures to enable people with low to moderate incomes to build up a private pension income to supplement their State Pension entitlement.

From 2012, workers will be automatically enrolled into either their employer’s existing workplace pension scheme or the new Personal Accounts scheme.  This will ensure that people who, in the past, have been unable to save in a pension scheme will be able to do so.

Under the reforms introduced by the Pensions (No. 2) Bill, individuals’ minimum contributions will be matched pound for pound by a minimum employer contribution and tax relief, providing a strong incentive to save.