Michael - Mr. Bee has a vested interest

12:27 | 24 Jan 2009

If the pensions act 2008 were to be altered in the way suggested by Mr. Bee, there would be a cost increase for the tax payer and a financial benefit to the pensions industry.

Alternatively, if the considerable cost of administering the pension credit system, was instead used to increase the state pension, it would be cost neutral.

Dave - The Poverty Trap

16:58 | 05 Feb 2009

If you save for a pension not only will it have an effect on your Age Related Allowance, assuming that you are able to save sufficient to buy a reasonable pension, but it will also be taxed as income when retired.

So, unless you are a higher rate tax payer, in the end you probably are no better off.

Further, income from pension is taxed at the standard rate, whilst all benefits are tax free. If you gain benefit status, you probably will not be required to pay council tax and there are a number of very useful further benefits which automatically become available.

Until this government makes it more attractive to save, rather than throw yourself on the mercy of 'nanny state' I can see very little point of most people saving into any pension scheme. Unless of course, their pension pot comes to at least £250,000!

Oh, and incidentally, as a beneficary of 'nanny state' you may well be eligible to claim all or part costs of your funeral when you die. You see, 'nanny state' goes on even after death.