New Uk Pension Plans To Be Unveiled

After 3 years of research and discussions, Lord Turner is due to
officially announce his proposals for reform to UK pension law
We’ve already discussed debt and retirement and the forthcoming
pension crunch; caused by a change in demographics and pressure
on savings because of mortgage and other loan debts Everyone
agrees, there is a “pensions crisis” looming, and it’s been
suggested that if the status quo continues, in 2050 the UK state
pension will be 10% of average salaries, pushing many pensioners
further into poverty
Lord Turner has been given the task of finding a solution to
take the UK into the next half of this century that is both
sustainable, and politically acceptable Unfortunately for Lord
Turner, UK Chancellor Gordon Brown has apparently rejected his
planned reforms before they have been officially published,
deeming them to be “unaffordable”
Lord Turner consulted employers, trade unions, and pension
experts for ideas on how best to construct a pension system The
core proposals of Lord Turner’s will likely include:

• The creation of a new “Britsaver” pension scheme for
  which workers will automatically have 4% of their salaries
  deducted, with contributions of 3% from employers and 1% from
  the government
• The end of the unpopular means-tested
  state pension, with an increase in the basic allowance to
  compensate Future increases will be linked with earnings,
  rather than the UK inflation rate
• The raising of the
  retirement age for which workers will qualify for a state
  pension to 67; and some have even suggested the report will
  suggest increasing this to 69

Chancellor Brown had reportedly attacked the restoration of
pensions and earnings as being a backward step, and even implied
Lord Turner had both got his figures wrong, and exceeded his
brief by proposing re-establishing the link between pensions and
earnings Some accused Brown of trying to “sabotage” the plans
with a pre-emptive strike before they’d even been published
Indeed, Prime Minister Tony Blair was forced to defend the
report, saying nothing is ruled out when discussing pension
reform
Gordon Brown will likely succeed Tony Blair into Downing Street
though and many would argue, is keen to assert his influence at
a critical time
The final report on UK pension reform is due for publication
today

Tags | average, brown, chancellor, crunch, demographics, gordon, inflation, result, retirement, salaries, scheme, state