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Personal account pension savers will be better off, says DWP


More than 70% of pension savers can expect to get back more than twice they put into a personal account after 2012, according to the Department for Work and Pensions (DWP).

Research from the DWP shows even after inflation 95% of those who save in a pension following the Government's 2012 pensions reform will get back more in retirement than they put in.

The report, designed to show people they will be better off in retirement under the Government's proposed policy of auto-enrolment, demonstrates although there is a risk in saving in a pension, the greater risk is not saving.

Minister for pensions and the ageing society Rosie Winterton said: "The research confirms we are absolutely right in moving forward with the decision to introduce auto-enrolment in 2012."

But Joanne Segars, chief executive of the National Association of Pension Funds, said: "For the majority of people it will pay to save but there is an important minority for whom this is not the case.

"The Government must work hard between now and the launch in 2012 to rebuild confidence in retirement saving."