People might have to seriously re-evaluate their future pension plans following chancellor Gordon Brown's decision to freeze the winter fuel allowance for pensioners for the third year in a row.
This decision has come in for much criticism, with some saying pensioners will not be able adequately heat their homes this year, especially those who rely heavily on their state pension.
According to Ann Robinson, director of consumer policy at the price comparison website, uSwitch, this lack of help with fuel bills could see the winter death toll among the elderly rise significantly.
"The winter death toll in 2005 was the highest for five years" she said.
She added that energy prices have risen substantially since the last increase in the winter fuel allowance, 57 per cent for gas and 42 per cent for electricity, and this is putting considerable pressure on people's pensions.
"Unfortunately, we are likely to see further price rises this year, and it is inevitable that the current total of 2.5 million households in fuel poverty will increase as a result," she added.
With the pension system under increasing strain, it could be a wise move for working people to think about their pension scheme in advance to avoid having to deal with the problems of fuel poverty in their old age.
However, recent reports suggest that many are still not making adequate contributions to their pension fund, if any at all.
Stephen Ingledew, director of Barclays Financial Planning said earlier this month that the number of people planning for their pension is falling.
He said that just a decade ago 23 per cent of workers had made no pension provision at all. Yet now almost 50 per cent of workers are not investing in a personal pension.
Freeze on fuel allowance could impact on pension funds
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Freeze on fuel allowance could impact on pension funds
Thu, 23 Mar 2006
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