UK - Low earners have little or no incentive to invest in a pension plan, a lobby group claims.
Low Incomes Tax Reform Group chairman, John Andrews, said current rules meant it would take “a lot of saving” to take poorer pensioners out of the means-testing benefits regime.
He added: “With the current levels of state benefits and tax allowances designed to combat pensioner poverty, we are questionioning whether any conscientious financial adviser could now recommend investing in a pension plan.”
The group said reasons why people on lower incomes were reluctant included:
- The complexity of the pensions system. - The fall in annuity rates.- Pensions misselling scandals. - The well-publicised difficulties of some providers.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers