Since there’s no requirement for matching funds, this is “free money,” Shillington says. Yet only 16 per cent – or one out of six eligible families – received the learning bond benefit.
I’m glad the task force took aim at governments, which don’t always talk to vulnerable people in ways they can understand.
To improve the take-up of benefits, government should: (1) Ensure that programs are clear and simple. (2) Simplify the application processes. (3) Improve outreach to raise awareness of programs and their eligibility rules.
Unless governments sharpen up their own financial literacy, not all citizens will get the benefits they deserve.
Ellen Roseman writes about personal finance and consumer issues. You can reach her at [email protected].
Keywords: pension reform, tax credits
