B&CE Benefit Schemes is urging the Government to tackle the issue of means-testing more quickly than it is scheduled to.
B&CE says it is pleased that the Department of Work and Pensions is conducting an investigation into the impact of means-testing on savers who will be joining personal accounts.
But it says it is disappointed to hear that the review, due by the end of this year, will not be tabling specific policy suggestions for how the issue could be tackled.
B&CE says greater urgency than this is required, because the current means-testing hurdle is in serious danger of poisoning the image of pensions and personal accounts.
B&CE deputy chief executive John Jory says: “We ourselves have put our money where our mouth is by sponsoring the PPI to conduct a detailed investigation of one of the potential ways to get over the means testing hurdle (through a Pensions Income Disregard) – and we will continue to work with the relevant bodies to try to crack this issue that we are facing every day in our efforts to encourage our audience to save for their future.
“We implore the Government to not allow this pivotal obstacle to wider take up of pensions to slip off the main agenda into the long grass of ever-longer Government review. It needs to be tackled right now with urgency if is to be stopped from pulling the rug from under the Government’s own ‘big idea’ for pensions.”