The Liberal Democrats have released their 2010 Election Manifesto, featuring policies that would aim to restore "dignity and security in later life".

The last of the big three political parties to reveal the main policies they will be campaigning on in the General Election, the Liberal Democrats have pledged to give pensioners a fair deal by increasing the state pension, and ensuring fair treatment for everyone from government, public services and business alike.

In a pledge seen also in the Labour and Conservative Manifestos, the Liberal Democrats will restore the link between the basic state pension and earnings, but will also increase the state pension annually by either growth in earnings, growth in prices or 2.5 per cent, depending on which is higher.

Tax relief on pensions will stand only at the basic rate, so that "everyone gets the same tax relief" on their contributions". The income tax threshold will be increased to £10,000, a move that will save pensioners around £100 a year, and compulsory retirement ages will be scrapped to allow flexibility to those who wish to continue to work into later life. In keeping with the flexibility theme, the much-debated early access to pension savings will form part of the political party's policies - people will be allowed to access part of their personal pension fund early, "for example to help in times of financial hardship".

As the Tories have promised, the Liberal Democrats would also scrap the compulsory annuity purchase rules at the age of 75, which would "give you control over your own pension", the manifesto says.

As for the public/private gap, the Party plans to "reform public sector pensions to ensure they are sustainable and affordable in the long-term", and will commission an independent review to agree "a settlement that is fair for all taxpayers as well as for public servants".

The Lib Dems have also pledged to set up a "swift, simple, transparent and fair payment scheme" to policyholders who suffered losses through the Equitable Life debacle, therefore meeting the government's obligations.

The Manifesto also contains an attack on Labour's record on retirement savings, stating that the Government has created a "hugely complex and unfair benefits system, and it needs to be reformed...pensions and savings have been undermined".

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