Prime Minister David Cameron has reiterated his desire to carry on increasing the state pension by 2.5% each year until 2020, should the current administration prevail in the 2015 General Election.
The Prime Minister promised to retain the current ëtriple lockí formula for calculating state pension rises, which increases the rate in accordance to the highest of inflation, wages or 2.5%.
He argued that the policy will be a key part of the Tory Manifesto this year, and disclosed his belief that it was important to prioritise pension development in an ageing society.
The Labour party has identified that they support the current stance, indicating that there will be a continuation of current policy towards pension regardless of who ascends to Downing Street next year.
ëRight choice for countryí
Mr Cameronís commitment to pension development has been a key aspect to his tenure, and has rejected any allegations that his improvement of the pension system is based on political factors rather than any ideological goals.
“It’s a choice based on values, based on my values.” Mr Cameron said.
“I want people when they reach retirement to know that they can have dignity and security in their old age.
“People who have worked hard, who have done the right thing, who have provided for their families, they should then know they will get a decent state pension and they don’t have to worry about it lagging behind prices or earnings and I think that’s the right choice for the country.”
However, the Prime Minister failed to make any announcements on his stance towards pensioner benefit entitlements, with rumours circulating that the current administration is preparing for a significant scaling down of the benefits available to the elderly.
The Labour party have somewhat surprisingly reiterated the stance of the Tories on the existing pension scheme structure, with Ed Miliband identifying his support for the current ëtriple lockí system.
Mr Miliband said: “We will set out our plans in the manifesto for all of our tax and spending proposals.
“That’s the right time to do it but nobody should be in any doubt about my commitment to the triple-lock on pensions.”
Despite the widespread political support for the existing ëtriple lockí system, it has failed to inspire the same degree of satisfaction for many across the country.
One such person is Frank Field, an ex-Labour party politician and dedicated poverty activist who has argued that it is the taxpayer who will suffer if pension costs continue to rise.
Mr Field raised concerns about what he perceives to be an inter-generational unfairness when it comes to finance support, arguing that pensioners continue to be shielded from the harsh economic climate at the expense of younger workers and families.
“If you are promising one group – a group that is more certain to vote – that they will get the gravy first, you are saying to others there is less for you… and somebody is going to have to pay the taxes to foot that bill.”
The triple lock system was first implemented three years ago, and has enabled pensioners to receive on average almost £15 more a week than they did 3 years ago.
It has been a remarkably successful in helping pensioners live a comfortable retirement despite the state of the financial world in the past few years.
The systemís ability to adapt the quantity of the state pension to key personal finance information has meant that very few have struggled to cope in recent times.
However, the comfort in which pensioners have lived has caused resentment from certain factions, who have called for some form of reduction in elderly funding in order to improve the amount young workers and taxpaying individuals are paying to subsidise it.
Indeed, many of Mr Cameronís own party have called for him to reduce the benefit budget for pensioners, or else risk alienating certain groups in society who are already ruffled by the amount they are paying each year for pensioners.
However, this view has been contested by Paul Green from Saga, said: “David Cameron’s commitment to the triple lock for the state pension will be warmly welcomed by British pensioners, giving them confidence that their lifetime of work will be properly valued by society.”
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