§ Mr. RosindellTo ask the Secretary of State for Work and Pensions what steps he is taking to ensure that the Government's low-cost stakeholder pensions are taken up by the people towards whom the Government is aiming them. [133203]
§ Malcolm WicksStakeholder pensions are for everyone, but particularly moderate earners without access to a company pension scheme. Employers that do not provide a company pension scheme must give their employees access to a stakeholder pension. Charges are capped to 1 per cent. of the value of the individual's fund each year, people can pay amounts from £20 upwards into them, and can stop and start contributions without penalty. Everyone now has access to a good value712W pension. Over three-quarters of first-year stakeholder pension sales (690,000) were to workers earning under £30,000 a year, with around two-thirds of first-year sales (530,000) going to workers earning under £20,000 a year. The Government is working to ensure that individuals actively and regularly plan for their retirement, that they are aware of the various options for saving for retirement, including stakeholder pensions, and where they can get information to help them make decisions.
§ Mr. RosindellTo ask the Secretary of State for Work and Pensions what plans he has to change the state pension age. [133518]
§ Malcolm WicksFollowing consultation on the options for equality in State Pension age, the Pensions Act 1995 introduced measures to gradually equalise the State Pension age at 65 between 2010 and 2020.
Our Green Paper "Simplicity, security and choice: Working and saving for retirement" (Cm 5677), which was published in December 2002, reviewed the issue of State Pension age and announced that we do not propose an increase in the State Pension age. Such an increase would impact most heavily on those most dependant on the State Pension.
The Government's priority is to address the employment rates of those approaching 65 and to introduce new choices to encourage people to work past 65 where they want to.