A pension saving initiative developed in response to the Royal Assent of the Pensions Act 2008 is on target for launch in 2012.
Personal accounts is to be launched by the Personal Accounts Delivery Authority (PADA), a non-departmental public body set up to address the fact that around seven million people in the UK are not saving enough to deliver the pension income they are likely to want in retirement.
Due to launch in 2012, Personal Accounts will be a workplace pension scheme targeted at low earners who are currently failing to take advantage of any pension provisions.
Eligible employees will be automatically enrolled in the scheme which will see both employer and employee contributing a percentage of the employee's salary to ensure they are on track for a comfortable retirement.
The scheme's latest annual report has revealed that the PADA is on track for its delivery in 2012. Commenting, PADA chief executive Tim Jones said: "The financial year marked a period of significant progress for the PADA. With the Royal Assent of the Pensions Act 2008, we moved into the delivery phase of the project and began working towards the launch of the personal accounts scheme.
"I am pleased to report on our progress this year and achievements so far, while remaining mindful of just how far we have yet to go. Success will mean a better quality of life in retirement for millions of people. The importance of this goal drives everything we do."
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