THE future financial outlook for millions is grim. Why are pensions the forgotten political issue when a huge number of people in their 20s and 30s pay no pension contributions.

To get a decent pension, at least 15 per cent of salary should be paid throughout the full working life. How can that generation afford 30 per cent payments in their 40s and 50s?

Only 7,000 of the 1,500,000 who were mis-sold dodgy personal pensions have been helped. Many others have never paid a penny into new pensions after opting out of good state and occupational schemes.

The safety net of the basic state pension has been slashed annually to a total cost of £1,000 per pensioner. Without new action, in the next century its value will plummet further. Private 'money purchase' pensions are a lottery. Between 25 per cent and 50 per cent of cash paid in disappears in commission, profits and admin. Falling annuity rates slashed the value of these privatised pensions between 1990 and 1994 by 30 per cent. One company is gambling £10 billion of pension cash on their hunch of a stock market collapse.

SERPS, the state-run second pension scheme used only two per cent in charges and is delivering superb value index-linked payouts.

Millions, young and old, face a future pensions hell. Pensions should be a major election issue. We can afford to beef up basic pensions and create real choice with a new efficient, good value state second pension scheme.

PAUL FLYNN MP, (former Labour Party spokesperson on pensions).

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