Pensioners 'should not be punished for prudence'
6.01.2009
Pensioners should not have to foot the bill for other people's borrowing, it has been claimed.
Saga Financial Services has stated that the over-50s should not be "punished for their prudence" by paying taxes on their savings.
It has therefore welcomed David Cameron's plans to increase the level of non-taxable income for pensioners by £2,000 a year.
Editor at large of Saga magazine Emma Soames explained: "These changes would help savers, especially the older generation ride out the economic storm more easily."
She added that there is "a real injustice" in most over-50s, who have built up substantial nest eggs, seeing the interest on their savings not only being eroded, but taxed as well.
Nationwide Building Society is the latest to have cut interest rates on its savings accounts.
The changes followed the Bank of England's monetary policy committee's decision in December to reduce the base rate to two per cent.
Saga Financial Services has stated that the over-50s should not be "punished for their prudence" by paying taxes on their savings.
It has therefore welcomed David Cameron's plans to increase the level of non-taxable income for pensioners by £2,000 a year.
Editor at large of Saga magazine Emma Soames explained: "These changes would help savers, especially the older generation ride out the economic storm more easily."
She added that there is "a real injustice" in most over-50s, who have built up substantial nest eggs, seeing the interest on their savings not only being eroded, but taxed as well.
Nationwide Building Society is the latest to have cut interest rates on its savings accounts.
The changes followed the Bank of England's monetary policy committee's decision in December to reduce the base rate to two per cent.