London & Colonial warns against pension/ISA blend

Earlier this month George Ladd of Fair Investment Company called for pensions and state pensions to be blended with ISA options in order to encourage saving, particularly in young people. Ladd claims people who feel they cannot afford to save would be more likely to put away money if they could withdraw it during hard times. However, Wrench says this option to withdraw funds would be counterproductive. "The big difference between the two savings concepts is ISA money is accessible to the saver and pensions saving cannot be touched until retirement," says Wrench. "The problem with t...