A single Citizen's Pension should replace the current troika of basic and second state pensions and the pension credit, according to proposals from a working group set up by the National Association of Pension Funds
Complexity in the current system not only confuses but also dissuades people from saving for their retirement, the NAPF argues.
The new, single pension would include a residency test and would seek to phase out contracting out.
Issues the working group will tackle include the level to set the Citizen’s Pension, and how to determine what means-tested benefits, if any, would still be needed.
A timetable will also be developed for introducing the scheme.
Organisations included in the working group include: the National Pensioners’ Convention, Legal & General, PricewaterhouseCoopers, National Consumer Council, the Pensions Policy Institute, Great Universal Stores, and Goldman Sachs.IFAonline
More than half of people over the age of 55 see financial security as a top priority in retirement, yet a third allocate more time to buying a new car, research from Legal & General (L&G) has found.
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Alongside Barrett, Boston, Hopkins and Thorman on 17 October