To Save or Not _ Government Mission Flawed

The government is on a mission to encourage everyone to save and has suggested that we should save irrespective of the effects it might have later in life, when we are means tested before securing any benefits.  

Scottish Life claim that the government’s recent statement to save, whatever the costs, is ‘crazy’ and needs to be clarified as it is at odds with the regulations laid down by the Financial Services Authority.  

Head of Pensions Strategy at Scottish Life, Steve Bee, commented that someone who has saved, and cannot lose money to triviality could find himself or herself no better off than a neighbour, or anyone, who has not saved, due to the way in which pension credits are calculated.  

Our view

We totally agree with Mr Bee here.  How can we suggest people with little money at present, save ‘whatever the costs’ only to be means tested and lose benefits at a later date.  This Government penalises those who have saved, so why would you?

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