Monday, 11th January 2010

The full UKIP Pensions Policy statement looks at the main areas in which the State is involved in old-age provision and suggests how each of these can be radically simplified, so that very few are worse off (within existing expenditure constraints) while at the same time removing many of the pitfalls.

The main recommendations are:
 
* 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%).

Download the full UKIP Pensions Policy document here (320kb).

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