News story

7th October 2002

Flexibility Key To Any New Pension System

Steve Webb MP, Liberal Democrat Work and Pensions Secretary, commenting on the National Association of Pension Funds (NAPF) report recommending new measures on pensions, said:

"Changing the rules is essential. Flexibility is the key to any new system.

“Allowing people to draw on some of their pension whilst still working adds more flexibility to the system. Many people will want a transition period where they can still have more free time but keep in touch with their workmates and earn some more cash.

"Forcing people to work until the age of seventy is not the way to end pensioner poverty. Instead, the state pension should be increased for older pensioners.

"The NAPF also recommend more tax relief for pensions. The report is right to point out that the National Insurance fund is large but tax relief is not the way forward. The money would be put to better use by boosting pensions for older pensioners."

ENDS