Reforming state pensions is the top priority in tackling the major pensions dilemmas facing the UK, ...
Reforming state pensions is the top priority in tackling the major pensions dilemmas facing the UK, Pensions Policy Institute says.
In a report published today, PPI criticises the current state pensions system demming it too complex, not satisfactory enough and with current forecasts for future spending BOTH "unrealistically low" and "socially unacceptable".
While the UK currently spends less than most other countries on state pensions, the report shows that the nation has an "uncomfortably" large amount of pensioners living in poverty.
Emphasising the need for "fact-based" debate, PPI puts forward several different models for how state pension reform should be tested.
In addition, the institute also proposes five models of state pension reform including a multi-component system with extensive means-testing, as well as a system sustaining the contributory link and the structure of the basic state pension - but at a much higher rate as to keep means-testing to a minimum.
Director of the PPI Alison O'Connell says:
"Reforming state pensions is the most important step in solving the growing discontent with our pensions system. State pension benefits are the only income the poorest sector of the population will have to live on in retirement."
"But the state system is widely criticised for being complex and inadequate. It is widely thought that the policies underlying the system are unsustainable. And private pensions only stand a chance of flourishing if they can be placed on a secure foundation."
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