THE LABOUR Party has pledged a huge shake-up to workplace pensions in its election manifesto today.
In good news for pensioners, the party committed to keeping the pensions triple lock, which increases the state pension each year in line with the highest of inflation, earnings or 2.5%.
In its manifesto, published today, Labour said: "Our system of state, private and workplace pensions provides the basis for security in retirement.
"Labour will retain the triple lock for the state pension."
However, in a shocking twist, the party said it also plans to reform workplace pensions to "deliver better outcomes for Uk savers and pensioners".
The manifesto said: "We will also undertake a review of the pensions landscape to consider what further steps are needed to improve pension outcomes and increase investment in UK markets."
MORE ON PENSIONS
The manifesto was scant on further detail about what the review will entail.
But it would be good news for workers who are increasingly worrying about the rising cost of retirement, with the state pension age projected to keep rising.
Meanwhile, the triple-lock pledge is welcome news for pensioners struggling with the cost of living.
However, the party did not match the Conservatives’ manifesto pledge to increase the personal allowance for pensioners in line with the state pension
This would be bad news for pensioners worrying about the prospect of paying tax on their state pension in the near future.
The state pension is expected to be higher than the personal tax allowance by 2027, according to the Office for Budget Responsibility.
This is due to tax thresholds being frozen until April 2028.
How does the state pension work?
AT the moment the current state pension is paid to both men and women from age 66 - but it's due to rise to 67 by 2028 and 68 by 2046.
The state pension is a recurring payment from the government most Brits start getting when they reach State Pension age.
But not everyone gets the same amount, and you are awarded depending on your National Insurance record.
For most pensioners, it forms only part of their retirement income, as they could have other pots from a workplace pension, earning and savings.
The new state pension is based on people's National Insurance records.
Workers must have 35 qualifying years of National Insurance to get the maximum amount of the new state pension.
You earn National Insurance qualifying years through work, or by getting credits, for instance when you are looking after children and claiming child benefit.
If you have gaps, you can top up your record by paying in voluntary National Insurance contributions.
To get the old, full basic state pension, you will need 30 years of contributions or credits.
You will need at least 10 years on your NI record to get any state pension.