As the government introduces its plans to close the country's £27 billion savings gap, a leading economist has published an article claiming there is no gap in the UK pensions systems.
In an article published in the journal of the Institute of Economic Affairs, Tim Congdon, has said the argument is flawed at a basic level as it only takes into account pensions savings and fails to include overall saving.
Experts and trade organisations have said that British people are saving an insufficient amount for their future pensions.
However, Tim Congdon, said that changes in regulations and tax procedures relating to pensions may have caused a decrease in the amount saved through pension vehicles but it did not necessarily mean that overall retirement savings have reduced as well.
He writes ultimately all savings must be drawn together on retirement or passed onto the next of kin on death.
He added that it is not necessary that everyone saves for their future through formal pension schemes.
Mr Congdon says the failure to notice this is an "elementary blunder" made by the Turner Commission.
No savings gap says leading economist
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No savings gap says leading economist
Mon, 21 Mar 2005
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