Break down barriers between working time and retirement |
|
|
Published
:
Tue, 17 May 2005 10:45
|
In his second innings in the Blair cabinet, former Home Secretary, David Blunkett is sporting a new avatar, that of the Secretary of State for Work and Pensions. Mind you his task is not an easy one. Indeed analysts are of the view that it is a Herculean one. Blunkett's number one priority happens to be sorting out Britain’s pensions crisis.
Experts have welcomed his appointment, Steve Bee, head of pensions strategy at Scottish Life, opines, “There are few politicians other than him who could stand up to the kind of pressure he will face if he tries to reform the system.” Christine Farnish, chief executive at the National Association of Pension Funds, says, " Blunkett is in serious mode, he is recognized as a problem-solver and carries no political baggage. He has made it clear that he wants a genuine debate and aims to reach a consensus on reform.”
| Blunkett said as much in his first speech as the Secretary of State for Work and Pensions. He was addressing the National Association of Pension Funds conference on Friday. He said that he wanted people to "take responsibility and key decisions for themselves."
"Reforming the welfare state is not just about tinkering with the nuts and bolts of managing pension payments. It is about transforming its nature from a safety net to a trampoline or an escalator. Providing help and support as it has always done but also enabling people to take responsibility for themselves," Blunkett stressed.
His comments assume significance in the light of a pensions report published last year. The report said that about 12 million Britons are not saving enough for their retirement. The report also recommended a mixture of higher taxes, more saving and a higher average retirement age as a remedy to UK's pension crisis.
Mr. Blunkett promised to involve the entire machinery in an effort to find a reasonable solution, "I am reaching out to all groups to establish a consensus that will provide the stability, certainty and fairness we all want to see in the pension system." he said. "The issue is not tax versus saving, (or) the question of how long people work. It's what people are prepared to do for themselves, and how we as a government support, enable and facilitate them doing it for themselves," he added.
Mr. Blunkett also said that the "perception of reaching 65 and hanging up our boots" had to change and people had to consider coming back to work after official retirement.
The Association of British Insures reacted positively to Mr. Blunkett's speech, "We will help the government to build this consensus and find ways to raise the level of savings," Director general Stephen Haddrill pledged.
|
|
|
|
|
|
Print this Story
