Govt actions `could lead to debt for pensioners`
08/10/2008
The government`s response to the banking problems in the UK could lead to a deepening of the pensions crisis.
This is the opinion of independent policy advisor Dr Ros Altmann, who described the Labour administration`s decision to increase guarantees for savers as "knee-jerk".
She stated: "It`s far safer now to put your money into a bank than a pension or any other long-term investment, because there is suddenly a 100 per cent guarantee, whereas the Financial Services Compensation Scheme or Pension Protection Fund only cover around 90 per cent up to a capped amount."
Dr Altmann went on to say that this will serve to undermine confidence in pensions and, thereby, may result in poverty - and potential debt - for the over 60s.
Meanwhile, a recent report by Citizens Advice Scotland suggested that retirees in the country are subject to greater levels of debt than they were four years ago.
According to the organisation, people aged 60 and over are 25 per cent more indebted than was the case in 2004.
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