Finance Act introduced Personal Pensions. Limit on investment by occupational scheme in scheme's employer. Large increase in number of self-employed since early 1980s suggests a potential increased burden on the State when these people reach retirement age. New system will provide a public-private partnership, building on best features of state and private provision. Minimum Income Guarantee - All eligible pensioners guaranteed a decent income in retirement.
Long term aim to raise in line with average earnings as resources allow.
More help for those earning between 9,500 and average earnings, and higher rebates for contracting out. When Stakeholder Pension Schemes have established themselves, State Second Pension will become flat rate. Aim for all middle and high earners to have private funded pensions. Carers, some disabled people with broken work records and mothers with young children will receive flat-rate credits to the new State Second Pension. Stakeholder Pension Schemes Framework legislation for new stakeholder pension schemes is included in the Welfare Reform and Pensions Act 1999.