Pensions - Articles - Broadstone comments on Osborne's support for state pension

 David Brooks, Technical Director at Broadstone commented that, “George has gone for the extreme argument that by taking away the triple lock this would some-how stop the basic state pension from being “decent and generous”. No one wants to see pensioners in penury but the country must live within its means and the maintenance of the 2.5% pa underpin is looking increasingly reckless. It has previously been described by Paul Johnson of the IFS as “random” and “bizarre” and incredible costly.”

 Brooks added, “The Government is trapped by their own manifesto but the continuation of the policy has seen pensions rise throughout the recession and throughout a period of extreme low inflation. This continued inter-generational unfairness will only compound problems for the future.”

 Brooks continued, “The Government announced the Lifetime ISA for younger savers in the Budget as a way to battle under provision in later life savings in the under 40s. Doing more for them, such as providing a larger bonus, may not win an election but would go some way to ensure that people reach old age with decent personal pension provision for their later life. Propping up an increasingly disproportionately wealthy old populous does nothing for the economy nor balance our books.”