Millions of people are not saving enough to have the income they are likely to want in retirement, and whilst life expectancy in the UK is increasing, people are saving less into pensions.
These are challenges that need to be addressed.
In 1901 there were 10 people working for every pensioner in the UK. In 2005 there were 4 people working for every pensioner. By 2050 it is expected that this will change to just two workers for every pensioner!
A fundamental change to the way that the majority of people save for retirement is needed, and that change is being brought in (with support on both sides of Parliament) through The Pensions Act, 2008.
This focuses on the new employer duties and what companies are going to have to address to ensure that they are compliant with the new legislation.