If you've ever thought that savings were complicated, you're not alone. Now a report says that this complexity is putting off savers.

You might think of 'savings' as being money you have in the bank, but it's much more complicated than that. According to the Centre for Policy Studies, the reason many of us don't save is that we find it all far too complex.

Pensions and savings are taxed very differently, but they're both aimed at the same market. But the differences between them make it hard for consumers to compare them.

What the report is calling for
The report into long term savings by the Centre for Policy Studies says that long term savings products (which includes pensions) must be simplified to encourage more of us to save.

It wants the government to introduce:

• An annual limit of £45,000 that we can save into 'tax incentivised' savings each year. This would include an upper limit of £35,000 a year into a pension.

SAVVY TIP: This combined limit would replace the curren annual limits for pensions and ISAs. At the moment, you can save up to £10,200 a year into an ISA and up to your annual earnings or £255,000, whichever is the lower.

• Tax relief to be given at your highest rate of tax that you pay, but limited to the total amount of tax you pay that year.

• Money saved in ISAs should be allowed to be transferred into a pension and given tax relief at 20%.

SAVVY TIP: This would benefit women in particular as many women prefer the idea of saving in an ISA to locking their money away in a pension.

• Savers should be allowed to access their pension money early. Savers should be able to withdraw up to 25% of their pension fund as a one-off transaction. The amount they take out would be deducted from their total pensions savings.

• Savers shouldn't be forced to buy an annuity. As long as the person doesn't withdraw money in a way that means they'd end up relying on the state, they shouldn't be forced to buy an annuity.

• Savers should be automatically enrolled into an ISA if they'd rather save through that, and not just an occupational pension.

• Couples should be able to contribute to each other's pension scheme, irrespective of how much the recipient earns. This would help women in particular, who often lose out when it comes to their pension.

• Money from pensions should be free of inheritance tax if it is invested into the recipient's pension.

• Introduce a 'junior' ISA. This could be limited to payments of £1,200 a year (the same as the child trust fund) and would encourage the idea of the ISA as being the savings vehicle for life.

Leave a comment: What do you think? Would this encourage you to save for the long term or do you think more needs to be done? Leave a comment below.

SAVVY HELP: Karen Ritchie is one of SavvyWoman’s panel of experts. Why not ask Karen a question about investing by clicking here?