UK Pension Calculator

Pension transfers, news, tips, plans, finance, QROPS...

Sun 24 Sep 2017 14:59 GMT
UK Pension Calculator

UK Pensions the Easy Way

Helping You to find the best UK pension plan

Scotland faces state pension time bomb

Scotland faces state pension time bomb
Published:  29 Jul at 9 AM
A promise by the SNP to guarantee annual increases for state pensions could see a £700 million financial black hole created by the middle of the century. Shadow Pensions Minister, Gregg McClymont, said Scottish Finance Secretary, John Swinney, would be forced to pay for pensions by cutting public spending and pushing up taxes.

The Coalition government has already introduced a triple lock on pensions that means the annual increase on payments either goes up by inflation, 2.5 per cent or increase in earnings, whichever figure proves to be the highest.

Although Labour has said it wants to keep the system if elected into power in 2015, the Lib Dems and Tories appear to be less keen.

According to Mr McClymont, the actions of the SNP have created a pensions time-bomb. He added that the situation was being made worse by the fact that Scotland’s population appears to be aging at a faster pace than the rest of Britain.

If the Scots vote in favour of independence in 2014, Mr McClymont wants the government to clearly set out a plan. He said it was obvious that the money will have to come from a tax increase, spending cuts and out of the wallets of hard working Scottish families.