Huhne says Government is failing to stop pensions crisis as savings fall (Eastleigh Liberal Democrats)

Eastleigh Liberal Democrats <enquiries@eastleighlibdems.org.uk>

Huhne says Government is failing to stop pensions crisis as savings fall

October 25, 2005 10:49 AM

Eastleigh MP Chris Huhne said the Government's pension policy is in tatters following new figures that show pension saving has fallen sharply since 1997. More than half of the population are now relying on their partners or the state to provide for retirement.

These figures suggest that in Eastleigh constituency, more than 34,800 people are making no occupational or personal pension contributions, Mr Huhne said.

"While 52% of men are not saving, the problem is even worse amongst women as 60% are not saving" said Mr Huhne. "In Eastleigh constituency, that suggests that 18,240 women are not saving and 16,588 men".

"This level of under-saving could prove damaging in future years when people become aware of how much they really need in their retirement. Survey after survey shows that people overestimate the income they will have in retirement and underestimate how long they will live.

"What is more disturbing is that the trend is worsening and the Government rather than tackle the challenge face on are making things worse.

"With the withering of the state pension and the spread of means-testing, people are no longer clear if it is worth their while saving or not. And with the growth in personal debt and the struggle to get on the housing ladder, pension saving inevitably takes on a low priority.

"The Government have said they are waiting for Adair Turner's Pension Commission to report at the end of November. But come December the Government must join the growing consensus that the only long term solution is a Citizen's Pension uprated in line with earnings and set at a level which would put an end to means-testing."