Radical state pension reform urged

image
Print Friendly

Campaigners for older people are calling for radical reforms to simplify state pensions, after finding that more than a quarter of people have no idea how much money they will receive under the current system.

Age UK said its research shows strong public support for Government plans to replace the “eye-wateringly complex” state pension structure with a simple flat-rate state pension for new pensioners set above the level of the means test, estimated at about £140 a week.

Almost two-thirds of people (62%) surveyed are in favour of a single-tier pension, with a high level of support found across all age groups.

The charity’s survey of more than 1,000 people found that 28% have no clue how much they are due to receive from their state pension and a quarter do not know how much private pension they are likely to get.

Age UK charity director general Michelle Mitchell, said: “Radical reform of our eye-wateringly complex pensions system is long overdue.

“With such high levels of uncertainty about our financial future, it’s clear that a simpler system – which provides greater clarity for all and makes it easier for people to plan properly for retirement – is urgently needed.

“Overall we support the Government’s proposals for a single-tier, flat rate state pension but as always the devil will be in the detail. The upcoming White Paper is expected to bring good news for many future pensioners, particularly those with lower lifetime earnings due to low pay or caring responsibilities.”

The planned reforms are part of the Government’s landmark moves to tackle the pension savings crisis, amid concerns that people are living for longer but failing to put enough money aside for their old age. Up to 10 million people will eventually be automatically enrolled into workplace pensions under a scheme which began last month, starting with larger firms.

The Department for Work and Pensions released research in August which found that state pension income varies widely from around £7 a week to £230 a week. Around 130,000 people receive £7 or less a week and a similar number get £230 or more a week.

Experts have said that current rules rely too heavily on mass means-testing which often penalises those who try to save for their retirement.

The following two tabs change content below.
Hello ... I am the Creative Director and Website Editor for Silversurfers and manage all the social media too. I hope you find the features and articles we have shared with you of interest and relevance. Please feel free to comment below and share your thoughts with us ... I hope you enjoy Silversurfers and all that we offer ...

Latest posts by Silversurfers Editor (see all)

Not a member?

Join the silversurfers community today! It's free, easy to do, and is packed full of features and amazing offers!

Join the community!
Click here if you have forgotten your password

Community Terms & Conditions

Content standards

These content standards apply to any and all material which you contribute to our site (contributions), and to any interactive services associated with it.

You must comply with the spirit of the following standards as well as the letter. The standards apply to each part of any contribution as well as to its whole.

Contributions must:

be accurate (where they state facts); be genuinely held (where they state opinions); and comply with applicable law in the UK and in any country from which they are posted.

Contributions must not:

contain any material which is defamatory of any person; or contain any material which is obscene, offensive, hateful or inflammatory; or promote sexually explicit material; or promote violence; promote discrimination based on race, sex, religion, nationality, disability, sexual orientation or age; or infringe any copyright, database right or trade mark of any other person; or be likely to deceive any person; or be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence; or promote any illegal activity; or be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety; or be likely to harass, upset, embarrass, alarm or annoy any other person; or be used to impersonate any person, or to misrepresent your identity or affiliation with any person; or give the impression that they emanate from us, if this is not the case; or advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.

Nurturing a safe environment

Our Silversurfers community is designed to foster friendships, based on trust, honesty, integrity and loyalty and is underpinned by these values.

We don't tolerate swearing, and reserve the right to remove any posts which we feel may offend others... let's keep it friendly!

More Pensions

Planning for 2017 and beyond a red pen is on a calculator beside a piggy bank. save on costs, expenses, and budget. interest for savers
As 2016 draws to a close, many people use the long evenings in December to look to the future and...
Have you got a pension down the back of your sofa? SS Image
Heading towards retirement? Time to make sure you’re going to receive all your entitlements...
Safe haven in the storm - plan for the future 10131-DWP-Record-900x550 (1)
In an ever changing world, it’s important to think ahead and plan for the future. If...
How to make the most from your pension freedom Senior couple tourists
George Osborne’s pension freedoms have unshackled pensioners from the need to buy an annuity...
Do you know how much your savings and investments are worth? RetireEasy_81827446
UK's first 'retirement planning dashboard' lets you know precisely what your savings and...
The 2017 Pensions Wish List Pension_retirementplan_resized
As an independent financial advisor I would hope I understand the differing levels of wealth...
6 key steps you should take before considering retirement Gold nest egg concept for retirement savings and financial planning
I’ve seen a lot of clients looking to retire over the last few years and I don’t think I’ve...
Why do I need retirement advice? Having a retirement plan A golden piggy bank card and calculator on wood background with text Retirement Plan
For as long as I’ve been a financial advisor I always hear comments on why would you pay for...
What do our Silversurfers know about Pensions? Worried senior woman, an elderly pensioner counting utility bills at her home, concept of financial security in old age
Some surprising results - Barometer Survey shows that many of our Silversurfers community are...
The Post Brexit World – “the pensions time bomb” Breaking The Bank
On the 24 th June the UK and possibly the world woke to a new dawn in global politics and global...
An extra £25 on your State Pension? Okay then! Retirement Senior Citizen Insurance Pension Management Concept
This week the Government opened the doors on its new State Pension top up scheme, meaning...
October 2015 - State Pension top up dwp4
There’s still no such thing as a free lunch, but there are some good investment options out...