Which? welcomes Pensions Act

28/11/2008

The new Pensions Act could help more people in retirement, it has been suggested.

This week, the new Act received Royal Assent from the Queen - meaning that it is now UK law.

The most high profile reform from the legislation is the creation of the Personal Accounts system, which is scheduled to begin in 2012.

This will oblige almost every employer to contribute towards a workplace pension for their workers, separate to the basic state pension from the government.

Therefore, it is hoped, people will have more money put aside for when they retire and will be less likely to fall into debt later in life.

However, other groups have criticised the government for not making Personal Accounts compulsory.

The Act allows employees to opt out of the scheme.

Commenting on the Royal Assent, Which? pensions campaigner, Mark McLaren, said: "The Pensions Act becoming law is an important milestone on the road to 2012.

"Millions of low to middle income consumers will now be able to look forward to a more comfortable retirement."

Tags; Current UK Economy, Retirement Money Problems,

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