UK - Occupational pension provision is "patchy" and the government should increase basic state benefits, a left-wing think-tank claims.
Catalyst says the basic state pension’s link with average earnings must be restored fully.
In its latest report – Better Pensions, The State’s Responsibility – the think-tank warned that occupational schemes were not widespread enough to solve the problems of pensions provision in the UK.
It said: “The coverage of occupational pension schemes is very patchy, being designed essentially for those with steady employment and earnings; and their results are generally modest.”
It said the government could only guarantee that people would not spend their retirement in poverty by boosting the basic state pension.Former PMI president Ian Eggleden endorsed the approach taken by Catalyst.
He said: “Putting the emphasis on the basic state pension would help people off means testing and help those running occupational schemes to plan with more certainty because they would know what the state would provide.”
Eggleden said the new pensions credit was “horrendously complex”.
The Department for Work and Pensions (DWP) has launched a website dedicated to signposting people to where they can receive guidance typically associated with a so-called 'mid-life MOT'.
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