Mid term review Jan 2013 Coalition and Pensions/Elderly

from  http://www.bbc.co.uk/news/uk-politics-20969488

PENSIONS AND OLDER PEOPLE

Original coalition agreement pledges:

• State pension to rise each year by the highest of earnings, prices and 2.5%
• Phase out default retirement age and raise state pension
• Compensate Equitable Life policy holders
• Protect winter fuel allowances, free TV licences, free bus travel, and free eye tests and prescriptions for older people

What coalition says it's achieved:

• "Triple lock" plan on state pension now in place
• State pension age to increase to 66 by 2020 and 68 by 2028
• Age-related universal benefits protected
• Default retirement age abolished
• Payments to Equitable Life policy holders have begun

Labour's verdict on coalition so far:

• Winter fuel allowances being cut
• Pensioners will lose out after tax changes

Coalition's mid-term 'to do' list:

• Expand automatic enrolment in workplace pensions
• Reform public sector pensions
• Carry through planned changes to state pension age
• Continue to protect age-related universal benefits
• Increase incentives for pension savings

BBC political reporter Justin Parkinson says: The coalition says its changes to the system, including raising the retirement age for men and women, are aimed at making the pensions system "sustainable". The "triple lock" guarantee for increases in payments gets top billing in this section of the audit. The protection of benefits like the winter fuel allowance is vaunted. But there are increasing signs that the universal element of age-related benefits will be targeted after the next election.