Response to Budget 2016
Published on 16 March 2016 02:30 PM
Caroline Abrahams, Charity Director for Age UK, said:
'Knowing you have a secure income to rely on in retirement is very precious, as grandparents often rightly tell their grandchildren, and it will be all the more important for today's young people because rising longevity means they may well be retired for a long time. The question is how best to support every young person to reach a position where they can look ahead to their later life with confidence, not fear.
'Today the Government has announced the introduction of life time ISAs to help the under-40s to save. We accept that the flexibility of a lifetime ISA may be attractive but this must not come at the cost of a proper pension in later life.
'Some experts are already expressing concern that these new life time ISAs could herald the long term demise of private pensions, because they incentivise young people to invest elsewhere. If this was to happen it would be a tragedy for future generations and that's why we think it is crucial that the Government also acts to sustain the attractions of pension saving and continues to give policy priority to automatic enrolment into workplace pensions - an excellent initiative that has got off to a good start and that needs strengthening so it can be even more useful in years to come.'
Notes to editors
- Media contact: Liz Fairweather
- Tel: 0203 033 1718
- Out of hours: 07071 243 243
We work with our national partners, Age Scotland, Age Cymru and Age NI and our local Age UK partners in England (together the Age UK Family). We also work internationally for people in later life as a member of the DEC and with our sister charity Help Age International.
Age UK believes that everyone should have the opportunity to make the most of later life, whatever their circumstances. We provide free information, advice and support to over six million people; commercial products and services to over one million customers; and research and campaign on the issues that matter to people in later life. Our work focuses on five key areas: money matters, health and well being, home and care, work and training and leisure and lifestyle.
Age UK is a charitable company limited by guarantee and registered in England (registered charity number 1128267 and company number 6825798). Age Concern England and Help the Aged (both registered charities), and their trading and other associated companies merged on the 1st April 2009. Together they have formed the Age UK Group ("we"). Charitable services are offered through Age UK and commercial products are offered by the Charity's trading companies, which donate their net profits to Age UK (the Charity).