You need to ensure that triple-locked pension betrayal never happens again.
Ros Altmann: After suffering a pandemic, many pensioners are now fighting rising living costs
Debate over whether older people should receive a bumper pension increase when workers are handed over under inflationary wages It broke out among top politicians.
Former pension minister and activist Ross Altman says pensioners deserve their rise after the government has betrayed its “triple lock” promise and gave it a 3.1% increase this year...
It’s really sad to see comments suggesting that pensioners shouldn’t get full inflation protection next year just because the rate of increase in public sector workers can be low.
This ignores the reality that most workers earn well over £ 9,600 a year, where poor pensioners live, and public sector pensions rise altogether with inflation.
This year, pensioners were betrayed when the triple lock on the increase in state pensions was suspended. It should never happen again. Inflation protection for state pensions must be properly restored after the promise is broken.
The increase in state pensions was only 3.1 percent this year, despite soaring earnings and prices.
The UK’s state pensions are the lowest in the developed world, with millions of pensioners spending most of their money on high-priced food, energy and other necessities.
This year’s conservative election manifesto promised to increase it under triple lock-up to 2.5%, earnings growth and inflation-was not respected.
After suffering a pandemic, many are fighting rising living costs.
Last year, with income growth of more than 8%, the government decided that maintaining income ties was not “fair” and passed a bill that robs even the poorest pensioners of the promised protection.
As a result, pensioners’ poverty has increased and consumer price indexes have complained that wages in the public sector have not risen enough to ignore the value of public pensions not mentioned in the rising debate. Those who say.
Rising Living Expenses: Pensioners are suffering from bills and falling into poverty after the 3.1% rise in state pensions last year, says Ros Altmann.
Its value has skyrocketed since 2010 as ultra-low interest rates have increased its value from about 25-30% of each worker’s salary to well above 40% of current salary.
These payments can never be reduced and must be raised in line with inflation. So how is it correct to suggest that state pensions should at least not be raised that much?
Despite efforts to close the gap in generosity between public and private pensions, the annual public sector pension bill has consistently exceeded expectations.
Public sector workers do not tend to consider the full amount of the promised pension, but this is a real part of the taxpayer’s expense.
In the private sector, inflation growth is limited to 5% or 2.5%, or there is no index link at all.
Many older people are struggling to pay bills after the state pension has risen 3.1% to £ 9,600 a year (£ 7,400 if they retired at base rates before April 2016).
CPI inflation is around 9.1% and could be even higher. Revenue growth, including bonuses, is 6.8%, and the average worker wage is close to £ 26,000 per year.
Millions of people depend solely on state pensions, and the poorest, usually women and those with low-wage careers, often did not have the opportunity to create a private pension.
The promised protection was also stripped from pension credits, putting the poorest at risk. The 3.1% increase was also applied to the benefits of this Means test.
This year, the government introduced urgent additional assistance in the form of one-time payments to pensioners. This is welcome.
However, proper protection of pensioners next year is very important and fully supports the decision to ensure that the promised rise in inflation will be paid from April next year.
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Betrayal of state pensions should never happen again, says ROSALTMANN
https://www.dailymail.co.uk/money/pensions/article-10942475/State-pension-betrayal-not-happen-says-ROS-ALTMANN.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Betrayal of state pensions should never happen again, says ROSALTMANN