Charity says pension system fails poorest citizens

Thursday, December 1, 2005

Citizens Advice, the network of independent charities that help people resolve their problems, has called on the government to accept pension reform recommendations from the Pensions Commission.

The Pensions Commission this week laid out the changes needed in the pension system to enable more people to save sufficiently for retirement.

And Citizens Advice says that the poorest citizens are the people that need most help, being unable to contribute significantly to retirement savings.

"The choices available to people on low incomes are minimal. Many are daunted by the complexity of current arrangements, and have failed to apply for Pension Credit, despite large amounts of publicity," said Citizens Advice director of policy Teresa Perchard.

"It is clear that most people will need to work longer and save more - an improved basic state pension will ensure that everyone can be confident of a decent income when they reach retirement."

Citizens Advice has also criticised the pension system for being too complicated for some older people to understand and has called for a review of how the pensions and benefits system treats those with low levels of savings and capital.

Need to know more about pensions? Click here:
http://www.europinions-finance.co.uk/pensions/pensions/
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