UK - Ninety-five percent of IFAs believe the pension credit is an ‘obstacle' which prevents retirement savings, new research shows.
An online survey conducted by Scottish Life - the pension specialist arm of the Royal London Group - showed almost 1000 of the 1029 respondents believed the means-tested benefits system acted as a ‘disincentive’ to saving.
The research comes as new government research shows 1.7 million people who are entitled to the benefit†have not signed up to receive it.
Scottish Life head of pensions strategy Steve Bee said: “The fact that the vast majority voted in the way they did should be taken seriously by those with the power to make changes to the system.”
Conservative work and pensions spokesman David Willetts says the next Tory government will reduce means-testing and bolster the state pension to encourage greater pension saving.
He told the party’s annual conference: “We can take one million pensioners off the means-test in our first parliament alone. We are not going to abolish pension credit but it will gradually be replaced by the higher state pension.
“We’ll save money on means-tested benefits that pensioners don’t like in order to put more money into the basic state pension which they do.”
However, work and pensions secretary Alan Johnson claimed the pension credit was “taking the fight on poverty even further”.
He added: “It also gets extra money to those who have managed to save something for their retirement and have missed out.”
New figures show 3.17m people are receiving the pension credit and £2bn extra a year is going to pensioners because of it.
Ex-BHS owner Dominic Chappell has been ordered to pay a total of £87,000 in fines and court costs after he was found guilty of failing to provide The Pensions Regulator (TPR) with information.
The Department for Work and Pensions (DWP) has said it while believes in the benefits of consolidating defined benefit (DB) schemes, there are significant issues to overcome.
There is just one week left to register to enter the Workplace Savings and Benefits Awards 2018.
Nearly a third (32%) of employers believe new technologies, such as augmented and virtual reality, will play a part in benefits communications, latest research from Aon Employee Benefits reveals.