UK - A new Citizen's Pension worth £105 a week could be introduced by 2010 under proposals published by the National Association of Pension Funds (NAPF).
The report, Towards a Citizen’s Pension, was published by the NAPF on behalf of the Pensions Policy Institute (PPI) and outlines how the transition to a Citizen’s Pension could be managed in a practical and affordable way.
The NAPF proposed the Citizen’s Pension – which would replace the current system of state provision with a single, universal, flat rate payment rising in line with earnings – more than two years ago.
Alison O’Connell, PPI director, said: “The report shows that a Citizen’s Pension, while not without some concerns, would be possible and could also have real advantages for state, occupational and personal pensions.”
NAPF chairman Christine Farnish (pictured) added: “Britain’s state pension system is horrendously complicated. The beauty of the Citizen’s Pension lies in its simplicity. The state will provide £105 a week, and any saving you do on top of that is yours.
“Anyone wanting a better income in retirement understands the need to make additional saving, either through a workplace pension or some other means.”
The next phase of work will look at alternative options for funding a Citizen’s Pension in the long-run and the likelihood of encouraging more saving within a simpler state system. A consultation period follows the interim report and a second report will be published by the end of 2005.
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