The CBI has criticised the Government's proposals for a citizens' pension, which is priced on residence instead of national insurance contributions, as an option the country can't afford.
In its submission to Adair Turner’s pension report, the CBI believes the biggest task facing Government is to provide a simpler system, aiding individuals on below average earnings who are not able to save enough for their own retirement. The group believes in a solution of gradually increasing the state pension to the level reached when the pensions credit is paid, so as to reduce the need for means-testing, with entitlement continuing to be based on contributions history. In order to fund this, the group argues for the state pension age to be increased over time to 70. The universa...
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