In a paper today, The Centre for Policy Studies’ Michael Johnson argues that while past entitlements should be honoured, the state pension is “facing fiscal calamity” without reform.
Total spending on the state pension has risen by a quarter since 2010/11.
Johnson argues that after 2020, a residency-based Senior Citizens’ Pension should be brought in, providing a larger income, say £200 a week, from age 80.
Johnson proposes complimenting this with a Workplace Isa, funded with a 50% state bonus and subject to a cap, to accommodate auto-enrolment contributions from employers.
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Date Added: Thursday 3rd November 2016