An overhaul of state pension payments is needed to “help UK savers achieve comfortable retirement”, Labour Party Chancellor Rachel Reeves has been told.
State pensioners born before 1959 warned over ‘overhaul’ which could be ‘bold’
Millions of state pensioners born before 1959 have been warned over an “overhaul” which could be imposed by the Labour Party government.
An overhaul of state pension payments is needed to “help UK savers achieve comfortable retirement”, Labour Party Chancellor Rachel Reeves has been told.
Ms Reeves is under pressure to launch a review into the state pension as part of herMansion House speech on Tuesday, July 15. “This week, the industry will want to see a strategy that sets out bold ambition with clear priorities to unlock this growth,” said Karim Haji, global and UK head of financial services at KPMG.
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“Amid the doom and gloom surrounding the UK economy, mounting pressures on the public purse, and policy reversals on Winter Fuel Payments and welfare reform, the Chancellor’s Mansion House speech presents an opportunity to flip the script – from crisis to confidence,” said Olly Cheng, financial planning director at Rathbones.
Glyn Bradley, the chair of Pensions Board at the Institute and Faculty of Actuaries, said: “It is now time to review the workplace and state pension frameworks, including for the self-employed, and more importantly to make some decisions on how to help UK pension savers achieve a comfortable retirement.”
Cheng emphasised that Reeves has the opportunity to make “bold choices with capital markets at the heart to get the economy firing” and implement “game-changing measures”.
“Finally, a pensions adequacy review needs to think about pensions in a wider world,” Bradley said.
Ms Reeves will on Tuesday set out a vision for Britain’s financial services industry based on sound public finances and a regulatory system geared towards growth rather than eliminating risk.Reeves will tell City of London grandees in her Mansion House speech that she will not put at risk Britain’s economic “stability”.
It comes in spite of pressure from some Labour MPs for higher public spending and looser fiscal rules.