GOVERNMENT FAILING TO PREVENT PENSIONS CRISIS: MULHOLLAND

12.00.00am BST (GMT +0100) Tue 18th Oct 2005

Greg Mulholland, MP for Leeds North West and member of the Work and Pensions Select Committee, has today condemned the Government over new figures showing that pension saving has fallen since 1997 so that more than half of the working age population (56%) are now relying on their partners or the state to provide for them in retirement.

These figures would suggest that in Greg's constituency of Leeds North West, 31,028 people are making no occupational or personal pension contributions.

While 52% of men are not saving, the problem is worse amongst women - 60% of whom are not saving. In Leeds North West the figures suggests that 16,260 of women are not saving and 14,768 of men.

Commenting, Greg, said:

"This level of undersaving could prove very significant in future years as people become aware of how much they have to survive on in their retirement. Survey after survey shows that people overestimate the level of income they will have in retirement and underestimate how long they will live for.

"What is more disturbing is that the trend is worsening and the Government rather than tackle the challenge face on are making things worse.

"With the withering of the state pension and the spread of means-testing, people are no longer clear if it is worth their while saving or not. And with the growth in personal debt and the struggle to get on the housing ladder, pension saving inevitably takes on a low priority.

"The Government have said they are waiting for Adair Turner's Pension Commission to report at the end of November. But come December the Government must join the growing consensus that the only long term solution is a Citizen's Pension up-rated in line with earnings and set at a level which would put an end to means-testing."