NAPF wants government to introduce ‘Citizen’s Pension’ by 2010 |
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Sat, 24 Sep 2005 11:05
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LONDON - The National Association of Pension Funds has added a new twist to the pensions saga by calling upon the government to give workers a "simpler, fairer" state pension.
The group said that British men and women might have to work until they are 69 in order to qualify for a basic state pension. NAPF said that the government should provide a citizens' pension worth £109 a week, a figure that would not cost the government anything more than it is already shelling out for the pensions system. Increasing the new pension in line with earnings could be brought about by first raising the retirement age to 67 by 2030 or by raising the pension age to 69 by 2040.
"Our research shows that these proposals chime closely with the pension priorities of consumers. People want a simpler, fairer system, which does not penalize women who have taken work breaks, and which does not subject millions of pensioners to means testing," said Christine Farnish, the NAPF's chief executive.
The NAPF says that everyone should qualify for a single state pension of £109 a week, although this would be increased with the optional private savings set aside by the pensioners. "The Citizen's Pension meets these criteria, and makes the whole pensions landscape much clearer. The 'deal' from the state is £109 a week.
For anything above that, you have to save through a workplace pension or other savings arrangements. There would be an opportunity for government to look again at designing more effective incentives for such savings," argued Farnish.
The government on its part has promised a fresh look into the whole issue of pensions with both Chancellor Gordon Brown and David Blunkett, the work and pensions secretary saying that they welcomed an open debate about the issue. The NAPF wants the government to make the 'Citizen's Pension' a reality by 2010 and has submitted its proposals to Adair Turner, head of the Pension Commission, who is due to submit a report on the same in November.
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