We must make the case for saving

Making the case for saving was the challenge facing the pensions industry and government, in the present economic climate, according to Pensions Minister Rosie Winterton.

Speaking at a key industry gathering she said that Government had taken steps to help ease the administrative and financial burden on pension schemes, but it was still vital that the public were reminded of the importance of continuing to save something for retirement rather than just deciding to cut out pension provision altogether at the present time.

Rosie Winterton said: "I will be asking experts across the pensions industry to consider how together we can best reach out to consumers to talk to them in a sensible and helpful way about their pension and about pension saving.

"It is interesting that until recently marketing encouraging borrowing has outstripped marketing encouraging saving by three to one.

"Accepting that people are not saving enough and those who are saving are considering their options, we need to be united in our message that pension saving is for the long-term and one of the best ways of providing for retirement."

Rosie Winterton pointed out that more was being done to give people a fairer deal on pensions, with the creation of Personal Accounts and changes to the State Pension that would give more women and carers access to a full state pension.

She also said she wanted to continue the helpful dialogue with industry and employers following measures taken to support pension providers and scheme sponsors, including:

* the deregulatory measures in the Bill- with a reduction in the revaluation cap from 5% to 2.5% for future accruals
* freezing the PPF admin levy
* qualifying earnings
* the informal consultation on section 75
* and the Regulator's guidance on recovery plans

The Pensions Bill is due to receive Royal Assent this month.