An expert is calling for an increasing pension for retirees of increasing age.
An expert argues for increasing the state pension for the very elderly (Image: Getty)
An economic expert is calling for changes to the state pension, which he describes as a “mess”. Neil Record, a former Bank of England economist, has outlined four ways to fix the benefit, which currently costs the taxpayer around £147 billion a year.
Writing in The Telegraph, Mr Record said it’s time to “abandon” the current state pension system, including getting rid of the triple lock. He would also axe the “cliff-edge retirement payment”, meaning pensioners aged in their 60s are paid less. Mr Record said: “The state pension age has risen (from 60 for women and 65 for men) in the last decade and will rise further – but it was set in the immediate post-war period when life expectancy was at least 15 years shorter than today.
“There is both a moral and financial case for increasing the state pension for the very elderly (80+ perhaps) – who are clearly not capable of working for a living and may need care – and paying for that with a reduced pension for younger pensioners, many of whom are still capable of work (and many choose to work) and most likely won’t need care until they are older.”
The current full basic state pension is £176.45 for those born before April 6, 1953. Meanwhile, the full new state pension is £230.25 per week for those born on or after April 6, 1953.
However, the exact amount you receive depends on your age and National Insurance contributions. You must claim it to receive payments.
Not everyone gets the same state pension money (Image: Getty)
The state pension is a flat-rate pension based on a contributory principle – but a very crude one. Under the new state pension, workers are required to complete 35 years of full contributions to their National Insurance (NI) record.
As well as giving pensioners aged in their 60s less money, Mr Record says the triple lock should be abandoned and the axing of the inflation cap.
Earlier this year, the Government announced plans for a review into the state pension age.
Secretary of State for Work and Pensions, Liz Kendall, said: “Just because pensioner poverty has fallen does not mean all the problems have gone away.
“Far from it. Women who are now approaching retirement have half the private pension wealth of men, so the average woman in her late 50s can expect a private pension income of just over £100 a week, compared to £200 a week for men.
“Only one in five of the self-employed are saving into a private pension, down from half in the late 1990s, meaning over 3 million self-employed people aren’t saving anything at all for their retirement.”
