There has been much talk in the finance industry regarding Stakeholder pensions and whether or not the Government should make them compulsory for employers and employees.
Standard Life has taken the bull by the horns and spoken their views on the subject. Their comment was that compulsion is morally wrong and the State pension should be bolstered instead.
Standard Life also raised the issue of whether people on low wages could actually afford to save into Stakeholder pensions and the fact that the Government introduced Second State Pension and Pension Credit were incentives not to contribute to Stakeholder.
Standard Life's views seem to be the same as many others and cannot be ignored. It is true that people on low incomes would be hit hardest by compulsion and that the payments could be seen as tax.
Something has to be done regarding pensions but all involved seem to be dancing round the houses. The State pension does need strengthening but that is only the start.
We believe that legislation needs simplifying and a radical overhaul of Government thinking is required. As an example, what is happening to the extra money raised through house Stamp Duty and Inheritance Tax in the midst of the house price boom? Could this not be used to fatten up the State pension?
Learn more about Stakeholder pensions in the Stakeholder Cafe.com.
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