Analysts at the Centre for Economic and Policy Research say their work suggests government and industry really have no idea about how to encourage long-term savings and may be putting forward policies that could be extremely damaging to pension savers
Just for starters, the research suggests there is no firm link at all between tax incentives and long-term savings, with “no convincing evidence” people increase savings by more than the tax subsidy involved, the CEPR says. The demise of final salary schemes may be causing angst, but the evidence suggests few workers in DB schemes are actually more efficient than those without, while implementation of a Pension Protection Fund is simply going to result in the transfer of subsidies from strong companies to weak. Most damning of all, CEPR's research suggests there is little evidence peo...
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