Pensions - Articles - Andy Zanelli says more must be done in pensions battle

 Andy Zanelli, head of retirement planning, AXA Wealth, comments on Steve Webb’s plans that will allow people to top-up their pension fund by up to £25 a week.

 “Today’s announcement from the Pensions Minister should be seen as a great benefit for those approaching, or who have already reached, retirement. The future introduction of the flat rate state pension, proposed in January last year, was an excellent first step in providing clarity around what people can expect to receive from the government when they retire. As with any system, it did mean that some people will be worse off after April 2016 than they would have been under the current system. Today’s plans should help those nearest to retirement ensure they have sufficient income to sustain their standard of living.

 “Research from AXA Wealth* has found that the average pension shortfall in the UK is £4,600 per year, however for those aged over 55 this increases by 71% to nearly £7,900. For these people facing a significant shortfall in their pension funding this is a great opportunity to top-up the amount they can receive from the government for the rest of their lives.

 “The government, financial services profession and consumers must do more to ensure that proper retirement planning is put in place to prevent an increase in pensioner poverty.”