Pensions Minister Mike O'Brien has reiterated personal accounts will complement rather than replace existing pension provision.
Speaking at the National Association of Pension Funds (NAPF) autumn conference, O'Brien says the Government will encourage increased participation in pensions across the board.
He says this will be achieved through delivering stability, effective regulation, providing clarity to the consumer and restoring confidence amongst a sceptical public.
He adds personal accounts will play a key role in creating confidence in saving and says the Government must deepen the consensus among political parties and within the financial services industry to restore the public’s confidence.
O'Brien says: “I have no doubt we can continue to count on the work of the NAPF in meeting this challenge. Because there are those who will talk down the value of saving, arguing it does not pay to save.
“Automatic enrolment in personal accounts will make it easier to save – in particular for those on low or moderate incomes.
“And the guarantee of minimum employer contribution and tax relief will make saving more rewarding – effectively doubling any contribution to the fund made by the individual. We also have to give people confidence in the system.”
Last week O'Brien confirmed providers setting up personal accounts administration centres would have to find their own start-up funds.
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