Government Failing to Prevent Pensions Crisis - Annette Brooke MP

11.59.57am BST (GMT +0100) Tue 18th Oct 2005

Pension saving has fallen since 1997

Annette Brooke MP 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 Mid Dorset and North Poole constituency 29172 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 Mid Dorset and North Poole constituency that suggests that 15600 of women are not saving and 13572 men.

Annette Brooke MP, said:

"This level of undersaving 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 tackling 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

A Citizen's Pension is based on residency and not contributions. It would particularly help women who have taken time out from work to act as carers.

Pensioner poverty is greatest amongst women: currently only 16% of women qualify for a full basic pension.