Unbelievably, the Financial Services Authority (FSA), the industry regulator, has criticised the Government saying that the new Pension Credit is not an incentive to save in pensions for retirement saying that the tax and benefits system will "blur incentives to saving for retirement".
They added in their 'Financing the Future' report that there is certainly a case for working people to consider 'saving through an alternative tax-efficient savings vehicle'.
Our view
These comments are not helpful in assisting Government to make people aware of their need and obligation to save for their long term future. Both the Treasury and the FSA seem to be having a 'war of words' in light of the impending Treasury "Sandler Review", which may go against the FSAs own views of future savings provision in the UK.