A debate took place in the House of Lords recently, regarding the costs of replacing the means-tested benefits system and increasing the state single pension by £20 per week.
The Government faced a defeat four years after it became law. The new proposals are seen to favour the rich, but pensioners who claim pension credit could be around £25 a week worse off.
Our view
The Government think people are not educated with regard to pension provision. They are wrong. Means testing discourages people to save. Forcing people to buy an annuity with their pension at age 75 discourages people to save. Forcing people to give their pension fund on death after age 75 as a windfall to either the pension company or charity depending upon the pension income plan also discourages people to save. Come on Gordon talk to us, we know what you do not know about your public.