Pensions Reform
Ahead of the November 2005 publication of the Turner Commission on
Pensions, the Liberal Democrats unveiled their plans for pension
reform.
Our proposals will result in a simpler, fairer and better state
pension system and will boost private saving. We would remove the barrier to
saving created by mass means-testing.
The Lib Dems set out plans
to transform Britain's inadequate and complex state pensions system, with the
introduction of a universal Citizen's Pension.
The Citizen's Pension
would be paid at £109.45 per week (2005/06 figures), instead of the £82.05p
basic state pension. The pension would rise year-on-year in line with the
increase in average earnings and would be paid to all those over state pension
age.
The Liberal Democrats would pay for these reforms by making tough
choices on the pension age and reform of public sector pensions.
Specifically:
·
scrapping the State Second Pension and cutting back means-tested
benefits;
·
increasing the state pension age to 67, with a 25 year lead in
time before anyone is
affected;
·
reforming public sector pensions to put them on a more sustainable
footing.
The Liberal Democrats also want to boost private savings, with
all employees being automatically enrolled in non-state pensions, with a right
to opt out.
"It is vital for the millions of women and carers who
will be retiring over the next 20 years that the Government establishes a
Citizen's Pension."
Sandra Gidley, Liberal Democrat Spokesperson
for Older People and Shadow Minister for Women
Click here to read the full report
Click
here to read a press release on the launch of the
report
