Saga calls for £1m pension lottery

Saga's pensions expert has claimed that a £1 million-a-month lottery draw for pension savers will encourage more people to save for when they retire.

Ros Altmann, director-general of Saga claimed such a draw would encourage more people to save for retirement than any advertising and marketing campaign, and could even save the state money.

Writing in the CII Retirement Savings Report, Dr Altmann also claimed the term 'pension' should be scrapped in favour of 'retirement savings' , claiming it should only be used to refer to money paid out by the state.

Dr Altmann said: "It is absolutely vital that we reinvigorate long-term savings."

She also warned that while one in three women and one in five men will need to go into a care home for an average of two years, costing well over £50,000, the average pension fund is only £30,000.

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