A single, simple and decent pension – Jenny Willott MP

January 15, 2013 9:53 AM

Jenny Willott MP

The Coalition Government's state pension reform will deliver a single, simple and decent pension for people in Wales. MP for Cardiff Central Jenny Willott described the announcement as vital to help deliver a stronger economy and fairer society.

· The new single tier pension, which will apply to anyone retiring after 2017, is equivalent to £144 a week. The basic state pension is currently £107.45.
· For the first time men and women will be treated equally.
· Self-employed workers will be included fully for the first time.
· You no longer lose out if you decide to bring up children or become a carer.
· Every bit of pension people have built up so far will be honoured.

This comes on top of the Liberal Democrat 'triple lock' for current pensioners which means that the full state pension, by April, will be £650 more than when Labour were in power. As a result, the basic state pension is now at its highest share of average earnings since 1992.

Jenny Willott said: "The worrying fact is that for many, the state pension is often not enough to live on. But the system has been so complicated that people working today don't know what they will get in retirement and it discourages them from putting anything aside.

"Pension reform is vital if we are to build a stronger economy and a fairer society. Thanks to the Liberal Democrats, the Single Tier Pension is a major step in recognising people who work hard and save to have a decent and dignified retirement.

"People who have contributed, either through paid work or caring or in some other way, should be guaranteed a pension clear of the basic means-test, and one that gives them security in retirement.

"That is what Liberal Democrats have been campaigning for decades to deliver, and in Coalition we are delivering these radical plans so today's workers can retire on a single, simple, decent pension."

Liberal Democrat Pensions Minister Steve Webb said:

"The current state pension system is fiendishly complex, after seventy years of tinkering by successive governments, and Gordon Brown's strategy of means-testing has failed those pensioners it was designed to help most.

"We need a simple, single state pension, set above the basic means test, which enables everyone to work towards a decent income in retirement and encourages more peoples to save for their old age."

What would you like to do next?