Pensions - Articles - Aegon responds to Ros Altmann statement

 “Given pensions are designed to provide savings for later life, we believe they are the natural fit for long term care funding, particularly post pension freedoms. But at present government pension policy is going in the wrong direction. This government has substantially reduced the total amount that can be built up in a pension with the lifetime allowance now just £1m. This may sound like a lot, but many middle income earners who have saved diligently may reach this figure at a time when the income that can purchase is at an all-time low and care costs continue to rise. 

 “Serious thought must be given to how to give people a clear view on how best to prepare for potential care costs. The government could look at increasing the lifetime allowance and potentially introducing rules which mean that a proportion of any savings above the allowance must not be touched until aged 80 for example or if in receipt of long term care. Ideas like this would need careful consideration and the government would need to look at options for those without the ability to save such large sums.”