Thursday, 28 January 2010

UKIP's Pension Reform Proposals

Trusty Statcounter tells me it's time to highlight a new policy in the sidebar, so this week, let's have a look at UKIP's pension proposals. The full pdf document is here (worth a read if you are interested); and the summary (lifted straight from the website) is as follows:

* To end discriminatory and over complex means testing on pensions, UKIP would roll all existing State pensions, Pensions Credit, the Winter Fuel Allowance into a flat-rate non-means tested, non-contributory and non-taxable “Citizen’s Pension” of £130 per week for all pensioners aged 65 and over.

* In order to better target the value of the tax reliefs for pension contributions on low and average earners, to reduce the annual limit for tax-relievable pension contributions to £10,000 gross from £235,000 now and reinstating the dividend tax credit at 20%.

* To allow more flexibility in the use of the final value of a pension fund.

* To scrap the statutory Pension Protection Fund and the National Pensions Savings Scheme as they are costly and counter-productive, and encourage industry wide funds to reduce administration costs.

* To bring the generosity of unfunded public sector final salary pensions back into line with typical pension provision in the private sector to avoid potential liabilities of £1,000 billion.

* To leave the EU to avoid massive liabilities in supporting unfunded EU pensions that would wreck the UK economy (UK has c.74% of GDP invested in pensions, Germany just 5.8%, France 5.6%, Italy 3%).


bayard said...

"UK has c.74% of GDP invested in pensions"

I take it that's a typo for 7.4%!