Pensions Means_Test _ No Incentive

Pensions Means-Test - No Incentive

A survey conducted by B and CE Benefit Schemes has revealed as many as two-thirds of people in full-time work believe the government’s pension credit will deter people from saving.  The survey showed that 7 out of 10 workers aged at least 55 felt means-tested benefits could deter people from saving.  A large majority also felt that topping up the basic state pension with means-tested benefits was unfair on those who had paid money into a pension scheme.  

Deputy chief executive of B and CE, John Jory said “It is not surprising that workers feel that topping up a pension with means-tested benefits in unfair on those who save and a deterrent to those who might.”

Our view

In 2004, Kevin Keasey, professor of financial services and director of Leeds-based International Institute of Banking and Financial Services, spearheaded research on the perception of means-testing.  His research found that 8 out of 10 respondents felt that people who had saved for retirement should not be means-tested.  We suggest this unlikely.

Take professional advice about saving and investing where it cannot be means tested.

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