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Could you live on basic pension of £90 a week?
• DO you know that the state pension in 2008 is £90.70 a week? Less than 17 per cent of the average wage and well below the government’s own official poverty level of £151 per week?
With the rising costs of fuel and food and the increasing instability of private and occupational pensions created by the financial crisis the level of pensioner poverty is set to continue to rise.
Do you know that the National Insurance Fund, which we have contributed to all our lives, has a surplus of £46billion, which is forecast to rise to £114billion over the next five years? This money is certainly not going to help pensioners if the practice of governments past and present of diverting the fund into government stocks and gilts continues.
Money is being used to subsidise other public spending rather than using it for the purposes it was meant. This penalises all pensioners. Paying a decent pension would help as the money is already there.
Did you know that people earning £43,000 a year only pay 1 per cent of National Insurance on any income over that level? By getting rid of this sweetener, these high-earners would have to pay 11 per cent on all their earnings.
Those who pay a higher-rate tax receive a higher rate of tax relief on their contributions to personal and occupational pensions. This means the better-off are given more assistance than the low-paid. Why not reduce this tax relief from 40 per cent to 20 per cent, the standard rate that the majority pay.
Would you be prepared to spend a year living on a state pension, given the major increases in fuel and food costs? Would you be prepared to live out your retirement on a basic state pension of £90.70? Why expect us pensioners to do so?
JOHN WORKER
Islington Pensioners Forum
Upper Street, N1
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