Britain’s biggest pensioner organisation, the National Pensioners Convention (NPC) has criticised pensions minister, Steve Webb for being “out of touch” with the reality of pensions in the UK. The day after the Budget, Mr Webb defended plans to allow anyone aged over 55 to withdraw their pension pot and spend it “on a Lamborghini.”
But the NPC has pointed out that at a cost of £165,000, the vast majority of workers will never build up a pension anywhere near that figure.
Dot Gibson, NPC general secretary said: “Mr Webb has given the impression that millions of workers will have hundreds of thousands of pounds tucked away in their pensions, when the reality is that the majority of those in the government’s new auto-enrolment scheme will be lucky if they get £36,000 after a lifetime of paying in. His comments show how out of touch he is with the whole pension system in the UK, which continues to leave 2m existing pensioners in poverty and future generations having to work longer, pay more and get less when they retire. Forget buying a Lamborghini – at this rate future pensioners will be lucky if they’ll be able to afford a Reliant Robin.”