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The design of the new Automatic Enrolment Retirement Savings Scheme is inadequate and fails to address existing inequalities in the State pension system

 

 

Equality for older people requires the re-distribution of resources; power and influence; status and standing; and respect.  Many older people live in the most vulnerable situations in our society with no capacity to increase their income while dealing with the increasing cost of ageing. A new autoenrolment scheme that further drives existing inequalities is simply unacceptable

A Strawman proposal for the new autoenrolment scheme was published in August 2018. A number of substantial concerns were raised at this time regarding the lack of information and clarity around the new scheme. Publication of the revised scheme – with little change from the initial 2018 proposal – in October 2019 saw little additional information made available on a range of crucial areas.

Paddy Connolly, Age Action CEO notes: “Efforts to increase pension coverage, while ensuring greater numbers of people are kept above the poverty line and in income adequacy in retirement are welcome. However, details of the new auto-enrolment scheme offer little information on how the new scheme will be implemented across relevant sectors and outside of paid work, and how it will help prevent further inequalities between those in higher and lower earning jobs, according to gender, and for those who are long-term unemployed.”