More fruits from the hard work of Liberal Democrats in government were realised this week.
New changes introduced by Liberal Democrat Pensions Minister Steve Webb on Monday mark the largest overhaul of the pensions system in almost a century. The changes give people the freedom to take control of their own pensions.
From this Monday, April 6th, 300,000 individuals a year with defined contribution pension savings will be able to access them as they wish when they turn 55 – subject to their marginal rate of tax.
These changes were announced in the Budget in 2014 and they were driven by Steve Webb, who has overseen a liberal revolution in the British pensions system.
The measures are just one part of a pensions revolution under Steve Webb. In government, he has overseen:
- the introduction of a ‘triple lock guarantee’ to increase the state pension by the higher of earnings growth, price inflation or 2.5%.
- a new guarantee for 9 million people to get a workplace pension, which their employers and the government pay in to, giving everyone the confidence to save.
- a new simple, single state pension to help people save for a better retirement.
- the foundations for a new model of private pension— the defined ambition pension — where the risks and uncertainties are more evenly shared between employer and employee.
- abolished the default retirement age-making it illegal for people to be sacked simply because they became a pensioner.
- authored the freedoms announced at the budget to allow people with annuities the freedom to sell on their existing annuity.
Monday also marks the increase in the basic state pension, thanks to the Liberal Democrat proposal for a ‘triple lock guarantee’.
The full basic state pension is now £950 per year higher than in 2010 in cash terms.
If you vote Lib Dem on May 7th, we can deliver on more of our promises as we have since 2010.