The ABI says the public is backing its call for reform of state pensions and a shift away from means' testing.
Its quarterly pensions and savings index shows that 50 per cent of people would save or increase their saving for retirement if the Government promised it would not reduce entitlements to state benefits.
Thirty-one per cent say they would save or save more if they were given a guaranteed return on savings, even if this meant lower returns and 22 per cent say being allowed access to their pension before they retire would encourage them to save. Twenty-two per cent say more information and education would help.
Director general Mary Francis says: “The Government has rightly focused on helping today's poorest pensioners but these policies are storing up problems for tomorrow's pensioners.
“It is impractical to abandon means' testing entirely but the less we rely on it the better. Means' testing stops people saving. At a time when people desperately need more help and encouragement to save, means-testing penalises many voluntary savers and is set to penalise millions more.”