More Clarity Needed On Savings _ Means Testing

Standard Life has called upon the Government to clarify its position with regard to long term saving and pensions.  Standard Life believes that the Government has unintentionally recommended financial advisers to disregard the Financial Services Authority guidelines on recommendations relating to personal savings.  

Standard Life claim that in a recent speech, the minister for pension reform Mr Mike O’Brien commented that it was bizarre that some people wanted to advise people not to save in case they were later subjected to means tested benefits.  

Standard Life is calling for clarity over the ‘Governments view, the existence of means-tested benefits has no bearing upon the recommendation to save for retirement’, which indicates that financial advisers can ignore the business rules of conduct laid down by the Financial Services Authority when making recommendations for pensions.  

Our view

We agree with Standard Life.  People are penalised for being financially prudent in this country.  If your neighbour takes a holiday every six months and you choose to save, why he should receive more benefits than you when you are both older or if you are both made redundant?

Our benefits system does help those who need it but it also penalises those who try to look after themselves.  

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