£109 state pension called for
Some financial experts are calling for a flat rate state pension of £109 per person, per month regardless of people's financial situation.
Currently, pensions are mean tested based on national insurance contributions, but a new announcement from the National Association of Pension Funds (NAPF) advocates simplifying the existing system with one amount for all.
'The principle of a simple, adequate, first-tier state pension, available to all, has become the basis for a growing consensus among opinion formers in the pensions, political and academic arenas,' said Christine Farnish, NAPF chief executive.
The body believes that updating the current would system would make state pensions fairer, especially to women and carers who sometimes miss out.
Research by MORI finds that four in every five Brits support the new Citizen pension plans, regardless of whether a woman has taken a career break or not.
Ms Farnish commented: 'Our research shows that these proposals chime closely with the pension priorities of consumers. People want a simpler, fairer system, which does not penalise women who have taken work breaks, and which does not subject millions of pensioners to means testing.' |