Pensions are an integral part of UK citizen welfare, whether provided by the state or by private investment. For the state pension, the dynamic financial relationship between the employed who provide National Insurance (NI) pension contributions and the retired who need pension support needs to be replaced with a ring-fenced sovereign wealth fund (SWF) to safeguard future pension provision. The Time Party will achieve this over a sustained 25-year period, whereby the present NI pension system is gradually replaced by the new SWF at 4% per year. After 25 years, annual NI contributions would no longer fund pensioners directly and the interest generated on the fully funded SWF would support all pension payments. At this stage it should be possible to scrap future NI contributions entirely.
- The Time Party will introduce legislation to create a sovereign wealth fund (SWF) to guarantee future state pensions.
- Maintain a double-lock on state pensions up to 2030.
- Permit a flexible retirement from the age of 60 years (the chosen age will affect the pension provision on a sliding scale).
- No tax relief on private pensions (higher rate tax relief adversely favours the rich).
- Maintain the arrangement for private pension drawdowns, with the freedom to make lump sum withdrawals of up to 25% tax-free.
- Full declaration of all investment fund management fees.
- Maintain the winter fuel allowance for state pensioners.
- Maintain free bus passes, prescriptions and eye tests for state pensioners.
- Expatriate pensioners to receive double-locked state pensions, irrespective of their global location.
- No cap on veteran/war spouse pensions.
- All company pensions to be ring-fenced against corporate failure.