| The Pensions Policy Institute (PPI) has issued a | | | | 18-40 and that a very large number of UK citizens |
| report which supports the Pension Commission's | | | | could well become dependant on state pensions. |
| recent demand for reform in the structure of the | | | | Personal finance has become a boom sector amongst |
| basic state pension. In fact the report goes further | | | | that same generation, with online access to personal |
| than simply backing the report, it calls for reforms to | | | | finance databases such as Moneynet ( ) and Motley |
| be implemented more rapidly than the Commission | | | | Fool ( ) providing a wealth of options for UK |
| has recommended. | | | | consumers. However despite the fact that many of |
| Essentially, the reforms that are proposed are for | | | | those options include savings and pension schemes, it |
| simplifications to be made to the current variations in | | | | appears that they are rarely taken up, with |
| available state pensions for those who are eligible. | | | | consumers opting for credit card deals, mortgages, |
| Means testing, currently used in determining eligibility | | | | insurance, and personal loans instead. |
| and the extent of the pension available, would be | | | | Pension experts have showed their backing for the |
| dropped in favour of an across the board pension | | | | proposed Pension Commission reforms with their |
| rate. Additionally, tax breaks for those who try to | | | | overwhelming response in the PPI report, and it is to |
| save for a personal pension would be put in place to | | | | be hoped that the simplifying of the state pension will |
| encourage saving. | | | | bring the importance of the issue to the attention of |
| These reforms would serve to make pension | | | | the age range identified by the FSA. |
| availability, and budgeting for retirement, much clearer | | | | Disclaimer |
| to understand and buy into, thereby preventing nasty | | | | All information contained in this article is for general |
| surprises for the individual late in life, or the | | | | information purpose only and should not be construed |
| government as a generation becomes dependant on | | | | as advice under the financial Services act 1986. You |
| a state pension. A recent survey by the Financial | | | | are strongly advised to take appropriate professional |
| Services Authority (FSA) concluded that very little | | | | and legal advice before entering into any binding |
| provision is being made for the future by those aged | | | | contracts. |