Tag Archives: state pension

The ‘triple lock’ and intergenerational fairness

Gordon and Margaret

Today Age UK launches its General Election campaign – Dignity in Older Age (www.ageuk.org.uk/generalelection) – which aims to tackle some of the key issues that millions of older people continue to face. Things like difficulties accessing the care and support they so desperately need, living in poverty and struggling to make ends meet, and facing a later life of loneliness.

Throughout the campaign we’ll be covering some of the issues in depth, beginning with Caroline Abrahams on why having a decent income in later life is so important.

What’s the State Pension worth on average? Not surprisingly, most non-retired people don’t know, and the result is that when the ‘triple lock’ is discussed some rather important contextual information like this is usually absent.

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Why we need the triple lock

440x210_pound-coins In a surprise announcement at the start of 2014 David Cameron, the Prime Minister, said that maintaining the ‘triple lock’ for the basic state pension will be a key part of the Conservative’s next election manifesto. This would mean that, at least until 2020, the basic state pension would be increased annually by the rise in prices, earnings or 2.5 per cent – whichever is higher. In response the Labour leader Ed Miliband has also said he is committed to the triple lock.

Reaction has been variable. Some newspapers immediately suggested this would affect other benefits such as the winter fuel payment – the Daily Mail’s headline was ‘Turmoil over OAP benefits’. The Independent welcomed the announcement but said it does not go far enough pointing out that the basic pension is still only £110 a week.

Alternatively, others have focussed on what this means for younger people with the Intergenerational Foundation stating the move is unaffordable and ‘betrays’ the younger generation. Continue reading

A fair state pension for all?

This blog was contributed by Hannah Pearce, Age UK’s joint Head of Public Affairs.

Every few years the government announces its intention to fundamentally reform the pension system once and for all to ensure it is fair and sustainable for current and future generations. Each of these attempts is made with good 200x160_moneyintentions and with the hope that the changes will last. However a few years down the line the next government decides it’s time to try again. I’m already working on my fourth pension bill since beginning work for Age UK.

Successive governments are compelled to grapple with the pensions system to catch up with societal changes such as increases in life expectancy, changes in working patterns and to counter structural unfairness. For example several of the state pension reforms in the 2007 Pensions Act sought to ensure that the pension system better reflected the lives of women who often have some time out of employment caring for children, older family members, or working part time.

The compelling reasons for reform under the current proposals were to create a system which is intended to be fairer, simpler and more sustainable. Under the single tier system individuals will receive a state pension based on their own contribution record of up to £146 in today’s money if they have a full record of 35 years contributions. Continue reading

A single-tier State Pension

Last week saw the publication of the long awaited White Paper on State Pension reform. This sets out plans for a single-tier State Pension of around £144 a week for people reaching State Pension age in the future (probably from April 2017 onwards). The reforms aim to create a simpler system, reducing the need for means-testing and making planning for retirement easier. They are also intended to produce a fairer system with a better State Pension for those who have had years of low earnings and caring responsibilities.

200x160_moneyAge UK supports these aims and we have welcomed the reforms as an important step forward for future pensioners. However we are aware that there are criticisms. In particular many older people with State Pensions of less than £144 are angry that they will not benefit. Continue reading