According to official figures uncovered by the Liberal Democrat party, over 500,000 pensioners are being swindled out of hundreds of pounds in state pensions, due to the Government exaggerating interest on savings .
The assumption, when calculating pension credit, is that pensioners earn some 10 per cent interest on their savings . However, nothing could be further from the truth. With Bank of England base interest rate slashed to 1.5 per cent, many pensioners are earning almost nothing on their savings .
This pension scheme injustices is leaving many elderly, vulnerable people having to dip into their savings to help pay for eating, heating, clothing and all other costs. Interest is deducted from pension credit payments, and the shortfall is hitting pensioners hard.
Pensions spokesman for the LibDems, Steve Webb, reportedly commented: "Life is hard enough for savers without the Government making it harder by inventing interest rates that nobody could possibly hope to get. Saving rates in the real world are plunging and yet the Government shows no sign of altering its own fantasy interest rates. When people who have worked hard and saved hard apply for some financial-help they should be rewarded for saving, not penalised in this absurd way."
Pension credit called a con
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Pension credit called a con
Wed, 21 Jan 2009
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