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Pension credits will not work for all

A leading academic has challenged the Government&#39s assertion that pension credits means it will always pay to save.

University of Leicester Nuffield community care studies unit&#39s Ruth Hancock&#39s presentation to delegates at the ABI pension credit seminar showed how: “Pensioners who have saved will nearly always have higher incomes than those who have not,”

Hancock said the thinking behind pension credit was that S2P was no help to current pensioners. The minimum income guarantee is unfair on those with small discretionary pensions or savings and Mig rules may discourage voluntary savings or pension provision.

Hancock also highlighted a number of unanswered questions about pension credit. She asked how well the credit will reward savers, whether it will work as an incentive and how it will interact with the state second pension.

She also explained how those receiving housing and council tax benefit can still receive full benefit from the pension credit.

Hancock said: “It is important to say it &#39nearly&#39 always pays – because there will be some for whom it will not.”

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