State pension to be simplified, says Iain Duncan Smith Skip to main content

State pension to be simplified, says Iain Duncan Smith

Click to play
Advertisement
Michelle Mitchell of Age UK welcomes the plans but says it is unclear who the winners and losers would be

Related Stories

The government will "fundamentally simplify" the pensions system so that it "pays to save" for retirement, Iain Duncan Smith is to say.
The work and pensions secretary will indicate a move towards a flat-rate payment for men and women.
This will remove disincentives for low earners to build up savings and ensure fairness for those who take time off to raise children, the government says.
There is speculation the basic state pension could be set at £140 a week.
But ministers have not confirmed this and Mr Duncan Smith is not expected to set a figure in his speech to Age UK.
The current full state pension is £97.65 a week for single men and women and £156.15 for couples. These sums are topped up for the poorest in society to provide a guaranteed minimum income of £132.60 for single people and £202.40 for couples, through the means-tested pensions credit.
In his speech, Mr Duncan Smith will say the system is too complex and say means tests discourage many people from saving at all for retirement.
'Crystal clear' He will argue that changes will ensure mothers who currently lose out on their pensions for having taken a career break to raise their children do not lose out later in life because of a lack of National Insurance contributions.
This reform would be paid for, in part, by savings in administration costs when means testing is scrapped.
Mr Duncan Smith is expected to say: "We have to fundamentally simplify the system. And we have to make it crystal clear to young savers that it pays to save."
He will warn that younger workers are becoming "increasingly cynical" about saving and will not be able to afford a "stable and secure" retirement unless the government does "something radically different".
The state pension age is already set to be increased in response to people living longer, with the default retirement age being abolished in October.
The government has moved to require employers to enrol staff automatically in private pension schemes from next year to boost individual savings for retirement.
But Mr Duncan Smith will say: "Auto-enrolment cannot solve the savings challenge on its own, and we have to be prepared to look at the other side of the equation. We now have to look at the state pension.
"The state pension system is so complex that most people have no idea what it will mean for them now and in their retirement.
"And too many people on low incomes who do the right thing in saving for their retirement find those savings clawed back through means-testing. We have to change this.
"We have to send out a clear message across both the welfare and pension systems: you will be better off in work than on benefits, and you will be better off in retirement if you save."
Chancellor George Osborne announced in last autumn's Spending Review that the state pension age for both men and women would rise to 66 by 2020 - six years earlier than had been planned by the Labour government.

http://www.bbc.co.uk/news/uk-politics-12674194
Labels:

Comments

Post a Comment

Popular posts from this blog

Sri Bhaddanta Chandramani Mahathera

The Life Story of A Distinguished And Outstanding Bhikkhu The Most Venerable Saradawpharagree Sri Bhaddanta Chandramani Mahathera The Buddhist missionary Saradaw Ashin U Chandramani was endowed with great gifts and led a famous and long life. He was a very well known, distinguished and outstanding Bhikkhu Mahathera. While living in the Kushinagar Monastery, a place close to where the Lord Buddha had passed away to Nirvana, the Government of India had offered, and he had accepted, the highest, most honourable and respected title "Guru Guru MahaGuru". He became the first ever President of all Buddhists in India.A World Buddhist Conference took place in Kathmandu during the reign of King Mahindra of Nepal. The Conference was very well attended by over one hundred thousand Buddhists from various parts of the world and it was opened by King Mahindra himself. As requested by the King, Saradawpharagree blessed all the participants with the power of Triple Gems...
Post a Comment
Read more

Thai penis whitening trend raises eyebrows

Image copyright LELUXHOSPITAL Image caption Authorities warn the procedure could be quite painful A supposed trend of penis whitening has captivated Thailand in recent days and left it asking if the country's beauty industry is taking things too far. Skin whitening is nothing new in many Asian countries, where darker skin is often associated with outdoor labour, therefore, being poorer. But even so, when a clip of a clinic's latest intriguing procedure was posted online, it quickly went viral. Thailand's health ministry has since issued a warning over the procedure. The BBC Thai service spoke to one patient who had undergone the treatment, who told them: "I wanted to feel more confident in my swimming briefs". The 30-year-old said his first session of several was two months ago, and he had since seen a definite change in the shade. 'What for?' The original Facebook post from the clinic offering the treatment, which uses lasers to break do...
1 comment
Read more

Three Dead, Seven Injured by Artillery Shells in Two Incidents in Myanmar’s Mrauk-U

By MIN AUNG KHINE 2 December 2019 Sittwe, Rakhine State –Three Mrauk-U township residents died and four others were injured when an artillery shell struck their community in the Ale Zay quarter of Mrauk-U town on Monday afternoon after 4 p.m. A month-old girl, a 4-year-old boy and a 30-year-old woman died, according to Dr. Khin Maung Yin, the head of Mrauk-U hospital. He said, “A man and three other women were injured. One of the women sustained severe injures to her left leg and her right knee was dislocated. The injured will be operated on.” Details of what occurred were not yet known. A few hours earlier, three civilians were injured when an artillery shell fell on the village of Na Leik in Mrauk-U Township, Rakhine State, western Myanmar, on Monday at around 1 p.m., according to Yan Aung Pyin village-tract administrator U Sein Hla Aung. Two females, aged 13 and 27, and an 18-year-old male were injured in the incident, he said. Three people were hit by shrapnel and we have...
Post a Comment
Read more