Webb wants solid state foundation

8 July 2010

Pensions minister Steve Webb has hinted that the Government may look to further improve the state pension to provide a solid foundation that encourages people to also save independently.

He said people are more likely to take a risk and pay into defined contribution schemes if they know they have a strong state pension to fall back on. He said: “It seems to me that if the state provides people with a firm foundation they will have more confidence to take risks because they know that whatever happens they will have that foundation.

“In a world where more pensions are going to be defined contribution and we do not know what we are going to get when we retire, it makes the case for a firm foundation from the state even stronger. A decent state pension becomes the foundation that gives people the confidence to move into the defined-contribution world.”

If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing