The government should immediately double the amount retirees receive in basic state pension, as there are no significant arguments for not doing so, according to an industry expert.
Economist and Banking & Securities Industry Consultant Robert McDowell told delegates at a Cityforum round table on Wednesday there is nothing standing in the way of increasing benefits for UK's elderly population as it would not be a cost to GDP.
Pensioners belong to the single biggest group of people relying on the state, with an estimated one-quarter soon to become dependent on the state pension.
That said, over half of pensioners' pension receipt goes back to the Exchequer in the same year. This means pensioners as a group are funding half of the retirement benefits they receive, he said.
With this in mind, McDowell urged the government to at least double the state pension, to mirror current living costs.
This would be both "fair" and "reasonable" if done quickly, he said.
If the government refuses to do so, it means "it just wants to limit state pensions", he added, as it has no reason for not increasing pension benefits.IFAonline
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