Personal Accounts fatally flawed

Jo has called for a citizens’ pension to encourage greater private pension saving

East Dunbartonshire residents may lose out under new Government pensions proposals unless mass means testing is curbed, according to Jo Swinson.

The Government yesterday unveiled plans in its Pensions White Paper for ‘Personal Accounts’, to encourage workers to save for their retirement.

Commenting on the proposed introduction of Personal Accounts, Jo said:

“Personal Accounts will remain fatally flawed as long as mass means testing remains part of the benefits system.

“East Dunbartonshire residents on low incomes may keep as little as 15 pence for every pound that they save, because of their reduced entitlement to means tested benefits.

“Personal Accounts were meant to revolutionise pension savings for people on average and low incomes, but as the Government has failed to curb the growing tide of means tested benefits, it is clear that for many, Personal Accounts will be both inappropriate and unfair.

“If the Government want a genuine pensions consensus they must create a citizens’ pension set at a decent level for all, which acts as a solid foundation for private pensions saving.”

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