Today marks the largest overhaul of the pensions system in almost a century, giving people the freedom to take control of their own pension.
From today, Monday April 6, 300,000 individuals a year with defined contribution pension savings will be able to access them as they wish when they turn 55 – subject to their marginal rate of tax.
This is one of the biggest ever changes to how people access their pensions, removing the effective requirement for many to purchase an annuity.
Announced in the Budget in 2014, these changes were driven by the Liberal Democrat pensions Minister Steve Webb, who has overseen a liberal revolution in the British pensions system.
Today also marks the increase in the basic state pension, thanks to the Liberal Democrat proposal for a ‘triple lock guarantee’. The full basic state pension is now £950 per year higher than in 2010 in cash terms.
Liberal Democrat Pensions Minister, Steve Webb said:
"As a Liberal I believe people should have the freedom to do what they want with the money they have saved up throughout their working lives. Our pension reforms will mean millions more people will have a better retirement"
Candidate for Poplar & Limehouse, Elaine Bagshaw said:
"I'm incredibly proud of the work that Steve Webb has done whilst in Government. Pensions will now work for hard-working people, and 650,000 women will be better off in the first decade of this reform.
Only the Liberal Democrats can be trusted to tackle the tough issues like pension reform and still deliver a better deal for the people of Poplar & Limehouse."