Whilst broadly welcoming the Government’s long term proposals on pensions today, Shadow Pensions Minister, Nigel Waterson, has warned about the potentially large number of workers who will be no better off under the new system of personal accounts. Nigel Waterson said:
“It’s clear many hundreds, or even thousands of people would be well advised not to enrol in the new system because they would be no better off due to means-tested benefits.
“Conservatives are concerned that the Government isn’t taking the issue more seriously as it could fatally undermine moves to boost pensions savings in the UK. This Government must address the issue soon or these personal accounts will fail.”