UK - The National Association of Pension Funds has set up a working group to investigate the possibility of implementing a simplified citizen's pension.
The group – which will be chaired by former NAPF chairman Tom Ross – aims to identify practical ways of implementing a citizen’s pension available to anyone who can satisfy a simple residency test.
The citizen’s pension would replace the existing basic, second state and means-tested credit pensions, which have been accused of being overly complex.
NAPF chief executive Christine Farnish (pictured), who is also part of the working group, said: “Over the years, the UK’s pension scheme has become ever more complex and confusing.
“If people don’t understand the state pension system – the most complicated in the western world – how can they be expected to make meaningful plans for retirement?”
The group’s other members include London School of Economics’ professor Paul Johnson, Great Universal Stores pensions manager Rhos Roberts, Legal & General pensions strategy director Adrian Boulding, chairman of the Actuarial Profession’s Pensions Board chairman Ronnie Bowie and Pensions Policy Institute director Alison O’Connell.
The Centre for Social Justice is calling for the state pension age to be raised to 70 by 2028 and to 75 by 2035, a much faster rise than currently planned.
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