Pensions expert attacks "no help" Budget

23/04/2009

Alistair Darling's Budget will "take money away" from pensioners, a former government adviser has said.

In an outspoken attack, independent pensions expert Dr Ros Altmann claimed that there were "no new measures" designed at promoting pension savings or enhance annuities.

People retiring this year are facing lower incomes due to falling annuity rates - an annuity being the product which converts pension savings into a retirement income.

Lack of support for pension savings could lead to higher levels of debt among over-65s, as they borrow money to make ends meet.

Despite this, older generations tend to hold lower levels of personal debts.

Dr Altmann commented: "There is no sense of urgency at all [in the Budget], but pensioners are struggling to make ends meet every day.

"There is also no help at all for middle income pensioners - the treatment of this section of our population is shameful. Some are going without food because their savings income has disappeared or because the inflation rate they face is much higher than for other groups."

Along with the criticism, the expert also welcomed the Budget decision to continue to pay Winter Fuel Allowance at the higher level introduced last year - paying £250 to all over-60s and £400 to over-80s to help them with their energy bills - in 2009.

Dr Altmann said that this was "good news".

Tags; Current UK Economy, Retirement Money Problems,

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