Govt urged to replace state pension with compulsory DC

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The government should consider scrapping the state pension to avoid national debt reaching unmanageable levels, argues a think tank.

Defusing the debt time bomb, published by the Institute of Economic Affairs (IEA), suggests replacing it with compulsory defined contribution (DC) pensions to help to help hit a debt target of 20% of national income by 2064. Its authors argue that government finances are on an unsustainable trajectory and that decisions taken by the current government have worsened the situation. The abolition of contracting out and introduction of the ‘triple lock' for state pensions were singled out as "especially unhelpful" while the nationalisation of the Royal Mail Pension Plan was also highlight...

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