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.
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