Basic pension rise not enough

Dot Gibson, general secretary of the National Pensioners Convention (NPC), stated the £2.70 a week extra and only £1.60 a week more for millions of older women who don’t get a full pension,

This will affect one in five older people who will continue to live in poverty, three million pensioner households are in fuel poverty and millions more are struggling just to make ends meet.’

Wealthy pensioners will still get their winter fuel allowance at least until 2015,

But there will be a cap on tax relief on pension contributions by the rich, the tax-free limit will be slashed from £1.5million to £1.25 million from 2014/15

The amount higher earners can save tax free in pension schemes will fall to around £40,000 from £50,000,

Britain’s richest pension investors have been hit just a year after the amount they could pay tax free into their pension pot went from £225,000 a year to £50,000, It means wealthy people with large pension pots will see more of it clawed back in tax raising nearly £1billion in revenue for the treasury.

The Chancellor’s raid will not just hit the rich it will hurt middle-income earners who are planning to build up their pension pot after family and housing costs has ease up in later life.

 Pension tax-breaks to be cut to from £50,000 to £40,000 a year to raise £1bn

 Tax-free allowance for pensions cut from £1.5m to £1.25m over a lifetime

 Basic state pension is to rise by 2.5% next year to £110.15 a week

 This still leaves one in five pensioners in poverty

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