This is one of the biggest ever changes to how people access their pensions, removing the effective requirement for many to purchase an annuity. Announced in the Budget in 2014, these changes were driven by Liberal Democrat Pensions Minister Steve Webb, who has overseen a liberal revolution in the British pensions system.
And the Liberal Democrats say thanks to their Triple Lock Guarantee, the basic state pension is now £950 higher in cash terms than in 2010.
Liberal Democrat Pensions Minister Steve Webb said: "As a Liberal I believe people should have the freedom to do what they want with the money they have saved up throughout their working lives. Our pension reforms will mean millions more people will have a better retirement. "
Steve Webb is the longest serving Pension’s Minister and has also:
- Introduced a ‘triple lock guarantee’ to increase the state pension by the higher of earnings growth, price inflation or 2.5 per cent, whichever is highest. .
- Guaranteeing 9m people a workplace pension, which their employers and the government pay in to, giving everyone the confidence to save. A new simple, single state pension to help people save for a better retirement.
- The foundations for a new model of private pension— the defined ambition pension — where the risks and uncertainties are more evenly shared between employer and employee.
- Abolished the default retirement age-making it illegal for people to be sacked simply because they became a pensioner.
- Authored the freedoms announced at the budget to allow people with annuities the freedom to sell on their existing annuity.