The Government should halt the Pensions Bill while it conducts a study into people's savings and how personal accounts will affect them, says Scottish Life's head of pensions strategy Steve Bee.
The Government says it will not publish the study’s results until the end of the year but this will be after the introduction of the Pensions Bill which is due in the summer.
Bee says: “The worry is that the presence of widespread means-tested support for the elderly could mean that it may not benefit people to save. It will be easy for people to work out that the scheme doesn’t provide good value for money and they won’t stay in it.
“I would have thought it better to put the Bill on the back burner while the Government go away and check just how many people are likely to be affected. Why carry on with making the Pension Bill into law before we know the answer to the big question?
“In effect, if this report is accurate, what we’re being told here is that the Pensions Bill, when it finally goes through, could well be the subject of almost immediate and fundamental amendment. Essentially this reads to me like advance notice of retrospective legislation.”
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