The public backs plans for Pensions revolution

Prime minster David Cameron is to hail the government’s ‘pension revolution’ later today after weekend polls showed the Conservatives had closed in on Labour lead with a year to go until the next election.

According to The Daily Telegraph, Cameron is to use his first speech since the Budget to say that around half a million pensioners will feel an immediate benefit from the ‘historic savings revolution’.

In the Budget chancellor George Osborne announced measures to dramatically increase flexibility of pensions at retirement, cutting the 55% tax charge for people accessing their entire pension at retirement from 2015.

Under the plans, savers who take their pension as cash will get the first 25% tax free with the remaining 75% taxed at their marginal rate.

Ahead of next year the government has relaxed the drawdown regime and made it easier for savers to cash in smaller pension pots.

Today, Cameron will tell Saga members: ‘This is about our values, and it’s about saying that the best people to look after their money are those who earned it in the first place’.

A YouGov poll for the The Sun showed that Labour’s lead over the Conservatives was just 1%, with Tories on 36% and Labour 37%.