Fabian Society also says Labour needs to be radical and introduce better provision for the lowest paid
Sir Keir Starmer should promise that a future Labour government would introduce a new workplace pension for self-employed workers and more generous retirement provision for the low paid, a leading left-of-centre thinktank has said.
Calling for the biggest shake-up of the pensions’ system in two decades, the Fabian Society said Labour needed to copy the radical approach of the Turner Commission two decades ago, which encouraged saving through opt-out schemes.
Increasing the minimum contributions for workplace auto-enrolment pensions to 12% of total earnings from the current 8%. This would be done by phasing in higher contributions from employers over time.
The introduction of new pension credits for carers, who are primarily women, to reduce the “gender pensions gap”
Changes to how people access pensions at retirement so that separate pensions are automatically consolidated into a single fund and then converted into new whole-of-retirement pension plans designed to increase with inflation.
