Tory MP Peter Lilley has suggested a plan proposing that means-testing on benefits which should allow people to build up their own pension fund and remove him from the need for means-tested assisted benefits such as the new pension credit.
The proposed system would piggy-back existing second tier state pensions by re-directing some of your existing National Insurance contributions into a new state top-up pension.
Our view
This is one move away from that word "compulsory". What Mr Lilley proposes, is exactly what we believe is needed anyway, in effect forcing people to pay into their own top-up pension. We have argued for many years that even the more recent introduction of the lower charging Stakeholder Pensions, is all part of Government plans, in the long term, to force the reluctant investor to save more in pensions.
A number of years ago the then pensions Minister Stephen Timms said "everybody has a duty to save", watch this space ovet the next few years for compulsory pensions.
Search the news archive for compulsory pensions.
Learn more about State Pensions in the State Pensions Centre of Pensions Adviser.com.
Learn more about low charged Stakeholder Pensions in the Stakeholder Cafe.com.