A conservative MP has accused industry and politicans of misjudging the UK pension crisis, saying the "real" problem is not pensioners who have lost all or part of their savings but the majority of young people who refuse to save.
Speaking at a Cityforum round table, Eastbourne MP Nigel Waterson has urged the pension industry and the government to focus efforts on the younger generation of Brits, who, he deems, are not at all interested in saving for their retirement.
He says: "The real pension crisis is not the 60,000 who have already lost their pensions, but the whole raft of young people who have turned their backs against pension savings."
Further exacerbating the problem, they do not believe in the UK savings system or the government, he adds.
Waterson believes the Pensions Bill likely to come into force in the next twelve months will not solve the problem. "It is an essentially defensive bill," he says, meaning it will "seal the coffin" for pensioners who are already saving while other people will be locked out.
The complexity of means-testing is a "terrible waste of taxpayers money", he adds, saying the government has to come up with other solutions, for example, scrapping the compulsion to buy an annuity at 75, if the current crisis is to be solved.IFAonline
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