Adair Turner has approached the Investment Management Association (IMA) to examine cost-effective ways in which National Insurance contributions might be pooled and put towards a pension.
Richard Saunders, chief executive at the IMA, says the trade body has also been in discussion with the Department of Work and Pensions (DWP)and the Treasury over such a model, which is similarly used in Sweden and Chile, while New Zealand is also moving in that direction. Saunders points out over the past twenty years, the UK has gradually moved from a State flat-rate system to one of means-testing, while many other countries have moved in the opposite direction. The IMA believes the UK needs to move back to a flat-rate state system, however, it says the government is concerned about th...
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