Green Paper proposes major reform
of pensions
In 2002, the Department for Work and Pensions published a green paper on pensions
(Simplicity, Security and Choice: Working and Saving for Retirement).
The reforms
outlined in the Green Paper have been triggered by increasing concern
that people need to save more if they are to avoid a drop in living
standards when they retire. There is also evidence that there has
been a decline in pensions provision by some employers.
The Green Paper
proposed reforms in a number of key areas
- Creation
of a single tax regime for pensions with a
lifetime limit on the amount of tax-privileged pension saving.
- Ending
compulsory retirement ages except where there is justification
and raising the normal pension age in the public sector for
all new entrants to 65. People will also have more choice in
working longer.
- Creation
of a new Pensions Regulator to focus on protecting
the benefits of pension scheme members
- Making it
easier for employers to set and run good pensions schemes
- Measures
to encourage more people to save more money for their retirement
