Nick Clegg’s idea that pension savings should be used as a form of guarantee to help young people get on the housing ladder is ‘half baked’, Saga’s Ros Altmann has said.
The pension commentator said it would be better to introduce incentives for young people to save themselves – such as allowing cash ISAs up to the full annual tax allowance. She added the Liberal Democrats current plan needed much more detail.
She said: “Most people don’t have enough in their pension fund anyway – and what if they have more than one child? Of course, most people simply don’t have enough money in their pension fund to make this a viable proposition.
“The average defined contribution pension fund is worth around £30,000, which delivers very little pension income in retirement anyway.”
Altmann called for “joined up thinking” on savings from the coalition and argued against mixing housing and pension policy.
