Additional pension reforms are required to address the impact of means testing, an expert has suggested.
Donna Bradshaw, an independent financial adviser from IFG Financial Services, has said that means testing needs to be reduced and people must be better encouraged to save their money in a pension scheme.
Her comments come after the government announced its new pensions bill on Wednesday, which included a requirement for employers to pay four per cent of an employee's salary into a workplace scheme if the worker is aged over 22 and earning more than £5,000.
A universal pension based on citizenship or residency rather than contribution letters may be advised, where as making it more attractive for people to save in the first place could also help the "compulsion" element of pensions saving, Ms Bradshaw suggested.
She was also critical of higher rate taxpayers being able to pay the least for financial benefits on a pension scheme.
Poorer people meanwhile will receive a "double hit" because they will be forced to contribute to their workplace pension scheme when they may be financially better off not doing so, Ms Bradshaw indicated.
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