Breakdown in talks 'could see millions lose out in old age'

By Tom Farley, Fri 29 Aug 2008 - Published in Pensions

Plans to introduce an equality test for existing workplace pensions before Personal Accounts are introduced in 2012 have been dealt a blow, according to Standard Life.

The company reports civil servants have walked out on discussions with a cross-industry group in what it describes as a "u-turn".

It claims the government's decision to walk out on talks could impact negatively on existing pension schemes and may result in low to middle-income earners finding they are worse off during old age.

Commenting on the development, John Lawson, head of pensions' policy at Standard Life, said: "Millions of low earners are set to lose out as a result of the government's failure to listen to concerns on this issue."

He stated the government's actions suggested they were "hell-bent on destroying" existing pension provision rather than protecting it as they had promised to do.

In other pensions' news, Standard Life claims changes to pension legislation that are to be introduced will benefit divorced women.

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