The Times reports today on more misleading government presentation on pensions:
“The government admitted that only 45 per cent of the 3.5 million workers who reach retirement between 2016 and 2020 would be entitled to the full amount of £150 p week.
The figures were exposed by a freedom of information request from Hargreaves Lansdown, a pensions company. It comes despite ministers saying previously that the new system would provide pensioners with “clarity” about their retirement income.
The figures also revealed that a third of retiring workers will be paid no more than £133.56 a week, rather than the full £150 a week.
Some workers will not receive the full amount as they “contracted out” to build up a private pension pot, while others have not built up enough national insurances contributions.”
We now know that there was a vast amount of pension mis-selling after the then Conservative government introduced ‘contracted out’ pension arrangements. It appears that many people on low incomes, who were ‘persuaded’ to contract out, will not have had the best deal.
Pensions’ policy is incredibly complex. However, everyone realises that, with life expectancy having significantly increased, there will need to be changes in pension contributions and retirement ages.
Many decisions will not be easy, because it is likely that the next generation will not do as well as the current one.
Therefore, it is incumbent on any government to be absolutely transparent about the implications of any proposed pension changes.
It is difficult to avoid the conclusion that, time and time again, this government has been less than transparent and has presented a misleading picture of their proposals.
We deserve better.