British pensioners will be paid more than double the amount they are currently paying in pension contributions, according to a report by the Independent’s pension fund.
The Independent’s independent pension fund says pensioners who receive an annuity worth £12,000 per annum will see their pension contributions increased by an average of £9,000, while those who have their own annuity of £2,000 will see it increase by an additional £3,000.
However, this increase will be offset by a reduction in pensionable earnings that will be introduced for pensioners working between the ages of 65 and 79.
It is the first time the Independent has seen such a detailed breakdown of the pensionable contribution amounts for both employees and pensioners, and is likely to set a new benchmark for how the government is managing the retirement of pensioners.
The government is working on an update of the UK’s pension arrangements, with the pensions regulator expected to release a report later this month that will show how the current system is working for the population aged 65 and over.
However a spokesman for the Department for Work and Pensions said that the government has been working hard to improve the pension system.
“We’ve made a number of reforms to ensure that the pension is fit for purpose, but more needs to be done to make sure that everyone can enjoy the benefits of pensions,” the spokesman said.
“The changes in this report will show that the changes we have made have made a real difference to people’s lives.”
The Independent understands that the new figures will show pensioners are on track to earn around £1,000 more per annuitary than they are now, meaning the average pensioner will be paying more than the average British worker.
However the Government has pledged to reduce pension contributions in future as it tries to address the growing costs of the NHS and public services, which are being covered by the taxpayer.
The changes will be seen as a positive by the public who have seen pensioner pay increase significantly in recent years, with a new study showing that pensioners were spending more on healthcare in 2017 than in the previous year.
However Labour said the Government had been “lacking transparency” about the changes and called for the changes to be announced “in full”.
Labour also called on the Government to announce a plan to fund the NHS through the introduction of a tax on the sale of expensive luxury cars and other products.
“It is time for the Government of the day to make public the plans they have for the NHS,” said shadow chancellor Chris Leslie.
“And now the Government is telling the public that they are going to make the NHS pay for a lot more of it.”