There have been renewed calls from industry bodies and providers to the Turner Commission to increase the basic state pension and scrap means testing. They are also requesting that incentives be increased for employers to contribute to employees' pensions.
Means testing has helped many lower income pensioners, and was introduced originally as a stop-gap, not a permanent measure, but recent moves to increase the benefits it pays through indexation suggest that it is here to stay.
Our view
Regrettably, those that do save or have pensions or investments will continue to be penalised for having tried to look after themselves. Those that have not made any financial provision will continue to be looked after.
This is a difficult one as there are many who unfortunately cannot afford to make provision for themselves. This 'nut' will never be cracked. We will always have the 'haves' and the 'havenots'