Pensions - Articles - Towry comment on top-up pension plans

 Andy James, head of retirement planning, Towry:

 “The plan to increase your state pension by £1 per week for every £900 you put in is not a bad deal. When compared with an index-linked annuity, which does not increase in the same way as the State pension but is a reasonable comparison, Steve Webb’s suggestion is compelling and substantially better than anything on the market at the moment. Therefore, if the structure of these increased payments suits your retirement objectives, and you will be retired by April 2016, it is certainly something that should be considered.

  “The major issue with this type of pension arrangement is that it takes no account of health. I would expect healthy people (particularly women who live longer) to find this an attractive offer. Those with lower life expectancies may still find annuity providers offering better impaired or enhanced rates.”