Incentivise Personal Accounts
Published / Last Updated on 07/12/2007
According to the Pensions Policy Institute Personal Accounts will be more popular if the first £12 per week of any pension income is disregarded when means testing is carried out.
Currently, up to £6,000 of savings is ignored for means testing purposes, although all income from pensions is taken into account. This £12 per week disregard would bring pension income into line with the current savings disregard.
Our view
We agree that there needs to be a relevant non-means tested level for private pension income. We all understand the rules. If you save in a pension plan, the Government penalised you and reduce potential benefits in retirement.
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