The Tories have unveiled their plans to encourage people to save more in pension plans.
They hope their new proposals will convince middle-income earners to vote Tory in the upcoming election on May 5th.
They are proposing tax relief to the tune of £1.7 billion to go towards pension contributions.
Michael Howard announced that a Tory government would add £10 for every £100 saved in a private pension fund.
He said the measure would be funded by the £35 billion cut in public spending, which
has been proposed under the party's James review.
Mr Howard appears to be making pensions a key election issue.
He warns that Britain faces a "pensions time bomb" as a result of the current lack of saving.
At present, 45 per cent of adult employees do not put anything aside to support them when they retire.
Mr Howard believes around 10 million taxpayers will benefit from the pensions plan.
The Tories have already promised to halve council tax for pensioners, and later this week will announce its third tax cut.
However, Labour and the Lib Dems both feel that the Tories will be unable to implement these plans.
They say the "black hole" in their spending plans simply will not allow for leeway on pensions.
Tories unveil private pensions plan
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Tories unveil private pensions plan
Mon, 18 Apr 2005
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