The e-petition can be found on the 10 Downing Street website at http://petitions.pm.gov.uk/ProperPensions/.
Scottish Life head of pensions strategy Steve Bee says many people on low incomes will have 40 per cent of their savings wiped out through loss of entitlement to means testing benefits. He fears a major misselling scandal as millions of people are auto-enrolled into Personal Accounts.
The Government has rejected Bee’s arguments, claiming that an improved basic state pension will mean only 30 per cent of people will be entitled to means testing benefits on retirement by 2050. But this conflicts with PPI forecasts of 50 per cent.
Many critics, including Bee, argue both forecasts are worryingly high.
Bee says: “That is essentially a 40 per cent tax for saving. Given that the proposals in the Bill mean it is likely that one in three people reaching retirement in the UK will be in receipt of means testing support it is a problem that may affect millions of people.”