Govt urged to replace state pension with compulsory DC

clock

The government should consider scrapping the state pension to avoid national debt reaching unmanageable levels, argues a think tank.

Defusing the debt time bomb, published by the Institute of Economic Affairs (IEA), suggests replacing it with compulsory defined contribution (DC) pensions to help to help hit a debt target of 20% of national income by 2064. Its authors argue that government finances are on an unsustainable trajectory and that decisions taken by the current government have worsened the situation. The abolition of contracting out and introduction of the ‘triple lock' for state pensions were singled out as "especially unhelpful" while the nationalisation of the Royal Mail Pension Plan was also highlight...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Government confirms no compensation for WASPI women over state pension age changes

Government confirms no compensation for WASPI women over state pension age changes

DWP finds communication delays did not amount to financial loss

Martin Richmond
clock 17 December 2024 • 4 min read
Chancellor's move to pause Pensions Review 'deeply disappointing'

Chancellor's move to pause Pensions Review 'deeply disappointing'

Rachel Reeves has reportedly pressed indefinitely paused the review

Jenna Brown
clock 16 December 2024 • 3 min read
FCA targets pension transfers and SIPPs in major review

FCA targets pension transfers and SIPPs in major review

Regulator launches review of DC pension rules

Isabel Baxter
clock 13 December 2024 • 4 min read