Radical redesign ‘is essential for pensions’

By Nathalie Thomas
Published on Friday 27 January 2012 00:00

PENSIONS should be radically redesigned into more flexible “lifetime savings accounts” to help young people pay off debts such as student loans, according to the head of Saga.

Investments expert Ros Altmann said pensions may be “past their sell-by date” as youngsters and workers on low incomes are reluctant to lock away their money for retirement when they have other more immediate worries such as student debt and finding a deposit for a house.

The director-general of Saga, the membership organisation for the over-50s, called on the UK government to look at ways of adapting pensions so that savers would be able to access some funds earlier and still benefit from employer contributions. She believes Britons would be encouraged to save more if products were more versatile.

“Pensions should become ‘lifetime savings accounts’ that can be used for people’s needs as their lives develop,” Altmann said. “I would urge the government to consider changing the design of pensions, and encouraging or requiring employers to contribute to other forms of saving for their staff.”

Altmann’s remarks follow a speech yesterday by Otto Thoresen, head of the Association of British Insurers, in which he said the industry had been presented with a “real shot” at turning around Britain’s “chronic under-saving”. He has also suggested making pensions more accessible.

Comments

There are 1 comments to this article

Order by:

• Newest first
• |
• Oldest first

Page 1 of 1

• 1
• Show all

1

duelaynomore

Monday, February 20, 2012 at 11:30 AM

Why save, when you'll be penalised for doing so. Better to spend as you go, and get used to filling in claim forms. Gordon Brown and his like just love the idea that there is a pot of gold that they can raid anytime they like. Besides if you have got a bit to much in your kitty you'll be means tested so that you can't get what everyone else did, despite them not saving for anything themselves !!! When defined pension schemes (especially for civil servants, politicians, judiciary etc..) are guaranteed by the taxpayer they will not take care of the economy. When the above group join the masses, in pensions which ARE based upon the economy (not guaranteed by increased taxes on the productive population), they will start making the economy work. At the moment they have no incentive to encourage the economy, and they can make up any silly old rules they feel like.

• Report Unsuitable

Order by:

• Newest first
• |
• Oldest first

Page 1 of 1

• 1
• Show all

Logged in as:

Comment here. Start typing your comment here:

Post comment

Please adhere to our Community guidelines

Your view

Please sign in to be able to comment on this story.