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24 October 2005
Save for the future that's what Brits will be encouraged to do by a new bill to be unveiled in parliament this week
Tory MP Sir Malcom Rifkind hopes to receive backing for a "Rights for Savers" scheme that will provide a cheap, long-term savings account allowing cash to be withdrawn at certain key stages over the account holder's lifetime.
A new retirement income fund, into which the newly-designed account could be converted - will also be proposed, whereby extra income may be taken provided that the retiree has enough cash in this fund to avoid falling back on the state for pension credit.
Rifkind explained to the Scotsman: "We want to encourage people to save from a young age, so it makes sense to permit withdrawals at key stages, such as when you are buying your first home, or to meet the costs of career development. This cash can be reinvested later in life."
The average person in the UK saves only 5 per cent of their disposal income - an increase from last year's 4.5 per cent but consistent with a stat that has not reached double figures since 1996.
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