Key Benefits The Bill contains measures to reform the State Pension, establish a Delivery Authority for personal accounts, and for some simplification of private pensions. In summary these measures are: Making the basic State Pension more generous by restoring the link with earnings during the next Parliament; Reducing the number of years it takes to build a full basic State Pension from 44 years for men (39 for women) to 30 years for everyone; Simplifying the State Second Pension to replace the earnings relation with a weekly flat rate amount, irrespective of how much an individual earns; Raising the State Pension age over time from 2024 to reflect increasing longevity, supporting extending working lives; Establishing a Delivery Authority to advise the Government on relevant proposals about personal accounts; and Streamlining regulation of private pensions, making it easier for people to plan and save for retirement. Background The Bill is part of the preparations to meet the challenges of increasing longevity and changing demographics. In 2050 there will be only two people of working age for every one person in retirement - today the ratio is four to one.

Act of Parliament

Explanatory Notes

Regulatory Impact assessment

Additional Information

This Bill follows an extended period of consultation including the reports of the Pensions Commission and a National Pensions Debate.

The key measures build on the proposals in the White Paper - Security in retirement: towards a new pensions system (Cm 6841, May 2006).

A further White Paper - Personal Accounts: a new way to save, was published on 12 December, and consultation will continue until 20 March.

Comments

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