The Rt Hon David Blunkett MP, former secretary of state for work and pensions, said at the 10th International Investment London Forum this week that current legislation does not go far enough to encourage long-term savings, and that the Government may need to resort to shock tactics.
Blunkett, who is currently working on Labour’s manifesto for the next election, said that the current situation is untenable and that the maximum contribution levels of £3,600 for the personal account will not be enough to solve the pensions crisis. He added: “We simply can’t have 50% of the population paying for the remaining 50%. Around half currently think they will be OK on state benefits and only 10% have any idea what their full pension will be in retirement.” He said the Government needs to look at more imaginative and hard-hitting ways to get its message across. A possible solution...
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