UK - Government plans for pensions reform have been criticised by a leading economist for lacking an economic overview.
In a paper, entitled ‘Pensions’ Crisis! What Crisis!’, the economist Robert McDowell says the government has not properly considered the beneficial effect on the economy of it increasing its spending on pensions.
And he points out that current government spending on pensions is lower in most other European countries.
He said: “The truth is that doubling the provision in government spending for pensions is affordable by the economy, would be good for the economy and could reduce pensioner poverty dramatically.”
He added that the effect on tax rates would be small – as pensioners would be taxed on any additional income they rec-eived – and that the effect could be “zero” if the government made more bonds available.
This would be very cheap for the government as it currently holds around £125bn of pension money in gilts that it could market to release additional cash for pensions.
But others in the industry have questioned this approach.
Standard Life senior technical manager John Lawson said that any additional income raised by the government should be used to meet projected deficits in future tax revenue that would arise through a future decline in the working population.
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
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The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.