		<div class="wpcnt">
			<div class="wpa">
				<span class="wpa-about">Advertisements</span>
				<div class="u top_amp">
							<amp-ad width="300" height="265"
		 type="pubmine"
		 data-siteid="111265417"
		 data-section="2">
		</amp-ad>
				</div>
			</div>
		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/02/warning-over-pensions-scandal.jpg"><img class="alignnone size-full" title="A pensions group has warned the Government it runs the risk of facing a mis-selling scandal if it fails to overhaul the state pension" src="http://londonglossy.com/wp-content/uploads/2011/02/min-warning-over-pensions-scandal.jpg" alt="A pensions group has warned the Government it runs the risk of facing a mis-selling scandal if it fails to overhaul the state pension"/></a></p>
<p>The Government runs the risk of facing a pensions mis-selling scandal if it fails to overhaul the state pension alongside its auto-enrolment reforms, a pensions group has warned.</p>
<p>The National Association of Pension Funds (NAPF) said there is a clear risk under the proposed system that workers who are automatically enrolled into their company pension scheme could miss out on means-tested benefits as a result of saving towards their retirement.</p>
<p>It is calling on the Government to avoid the problem by simplifying the basic state pension, so that it pays everyone around £140 a week, to remove the need for means-testing.</p>
<p>From 2012, all workers will begin to be automatically enrolled into their company pension scheme, although they will retain the right to opt out. Individuals will contribute 4% of their pay, with their company paying in 3% and the Government topping this up with 1%.</p>
<p>If employers do not have their own pension scheme, people will be enrolled into the National Employment Savings Trust or Nest.</p>
<p>But NAPF chairman Lindsay Tomlinson said: &#8220;Unless it tackles the means-testing trap, the Government faces a major mis-selling scandal.</p>
<p>&#8220;This will materialise a few years down the track, when a large number of people discover that being auto-enrolled into Nest has merely resulted in a reduction in means-tested benefits they would have received if they had opted out. This is potentially a big problem that we are storing up.&#8221;</p>
<p>Speaking at the annual NAPF Chairman&#8217;s Dinner in London, he said: &#8220;The desperately needed simplification of pensions has to start with the state pension. It is the bedrock on which all else is built.</p>
<p>&#8220;We recommended the creation of a Foundation Pension, payable to all UK citizens, of around £140 a week. Paying a basic state pension at this level would enable a reduction in the baffling array of means-tested benefits.</p>
<p>&#8220;In turn this would take people out of the means-testing trap. It would give them an incentive to save in the knowledge that their savings would not cut the state benefits they would otherwise receive.&#8221;</p>
			<div style="padding-bottom:15px;" class="wordads-tag" data-slot-type="belowpost">
				<div id="atatags-dynamic-belowpost-68eea4405b159">
					<script type="text/javascript">
						window.getAdSnippetCallback = function () {
							if ( false === ( window.isWatlV1 ?? false ) ) {
								// Use Aditude scripts.
								window.tudeMappings = window.tudeMappings || [];
								window.tudeMappings.push( {
									divId: 'atatags-dynamic-belowpost-68eea4405b159',
									format: 'belowpost',
								} );
							}
						}

						if ( document.readyState === 'loading' ) {
							document.addEventListener( 'DOMContentLoaded', window.getAdSnippetCallback );
						} else {
							window.getAdSnippetCallback();
						}
					</script>
				</div>
			</div>
Discover more from London Glossy Post
Subscribe to get the latest posts sent to your email.
