PM announces boost for pension savers

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grandparentsPension saving may not be the most immediate of our financial concerns at the moment, as high inflation and job fears make for an uncertain economic climate.

But for those of us who are focusing on the future, David Cameron has provided a bit of financial hope.

Pensioners will now receive an extra £5.30 a week, in what the Prime Minister says is the "largest cash rise in history".

From this week, the basic rate state pension will increase to £107.45 a week. Mr Cameron says this increase proves the Government is committed to the elderly.

"We owe older people in society our respect, our support and our care," he said. "That's why from the start I've made sure this Government protects pensioners and gives them the help they need.

"We brought in the triple-lock to restore the link between pensions and earnings - guaranteeing the basic state pension rises by whichever is highest out of rises in prices, average earnings or 2.5%. Today we're delivering, with a 5.2% increase in the basic state pension".

The Government has been heavily criticised for its treatment of pensioners after the Budget in March, with its plans to phase out age-related tax allowances slammed as a "granny tax".

Find out how to set up a personal pension plan if you don't already have one.

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