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Poorest need pensions reform help
02/12/2005 13:28:00
Citizens Advice has welcomed the Pensions Commission's blueprint for pension reform, urging the government to approve the recommendations so that the UK's poorest people can benefit.
Teresa Perchard, Citizens Advice director of policy, said that poverty for millions would worsen if the problems with the current pension system were not addressed.
At present, as many as 1.7 million of the UK's poorest pensioners do not apply for Pension Credit, meaning they are missing out on money to which they are entitled which could ease debt problems.
Ms Perchard said: "Many are daunted by the complexity of current arrangements, and have failed to apply for Pension Credit, despite large amounts of publicity.
"The National Pension Savings Scheme provides the guarantee of a state-backed pension scheme for all employees, but for it to succeed, there would need to be assurances that employers will contribute.
"In any move to create a National Pension Savings Scheme, there will be a real need for better access to financial advice and education to help people and employers to understand the options available and exercise an informed choice."
She added that even with the Savings Credit, a lack of enticement meant that in the region of 7.4 million people were not saving any money at all.
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