John Hutton, the work and pensions secretary, said yesterday that automatic enrolment to personal savings accounts will help people prepare for their retirement.
Mr Hutton said that it is vital that the "culture of under-saving" is tackled and that the government believes automatic enrolment will help to do this.
The Department for Work and Pensions also argues that automatic enrolment has public support as it highlights a recent pension debate which found that 72 per cent of the British public felt that automatic inclusion should be the norm, with people provided with the opportunity to 'opt-out' of the automatic system.
Also commenting on the savings accounts at the launch of a pensions consultation, James Purnell, the pensions reform minister, said that the "radical reforms" could allow ten million people benefit from the new savings account system.
"Getting more people saving is crucial to avoiding a pension crisis in the future. People recognise that they need to save more," he added.
"We are now working with industry and employers to make this simple and easy to do."
John Hutton was elected to parliament in 1992 representing Barrow and Furness, before which he was a senior lecturer in law at the University of Northumbria.
Personal accounts 'will tackle pensions saving'
Personal accounts 'will tackle pensions saving'
Tue, 18 Jul 2006
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