TISA WELCOMES UNIVERSAL PENSION PROPOSALS
TISA today welcomed the proposed provision of a universal basic state pension at the current Pension Credit level, with means testing to be abolished.
Malcolm Small, Director of Policy, said:
“The current arcanely complex state retirement benefit architecture has long been due for improvement, and a universal, decent, basic state pension is something we’ve long argued for. The devil will be in the detail, of course, but the direction of travel is clear. The current system of means-tested retirement benefits acts as a disincentive to save in a pension for modest earners and this reform will be essential before auto-enrolment into pension saving begins from 2012.
“Furthermore, if people are clearer about what they will get from the state in retirement, they have the clearest possible incentive to save beyond that level if they want a better retirement than the state alone will provide. For low earners, the basic state pension will provide a better income replacement rate than it does today. This is, on the face of it, the best news in pensions I have seen in the last 5 years.”
Ends……
For further information, please contact:
Malcolm Small, Director of Policy, Mobile: 07989 500771 Email: malcolm.small@tisa.uk.com
Issued on behalf of TISA by Cauldron Consulting, contact Steve Radford – Tel: 020 3178 7238, Mobile: 07889 903786 Email: steve.radford@cauldron-consulting.com
Notes for Editors
The Tax Incentivised Savings Association (TISA)
TISA is the premier industry funded body in the UK retail savings and investment industry. By engaging with member firms, government, political parties, regulators and consumer groups TISA’s ultimate goal is always to further consumers’ best interests. It seeks to improve the range, features and quality of savings and investment schemes available whilst encouraging more people to save for their financial security and peace of mind.
Uniquely, TISA is able to articulate the opinions of the whole savings and investments marketplace through its membership comprising over 120 member firms involved in the supply or distribution of products. TISA’s remit extends across the broad spectrum of government sponsored savings and investment vehicles.