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

Pension freedoms and lessons from Down Under

Pension freedoms and lessons from Down Under

How the UK can build a more 'robust and supportive' system

Verona Kenny
clock 09 April 2025 • 4 min read
UK workers regret not learning about pensions sooner

UK workers regret not learning about pensions sooner

Over half admit to feeling out of their depth, research finds

Isabel Baxter
clock 08 April 2025 • 2 min read
Why is it so difficult to switch a pension? Navigating the transfer maze

Why is it so difficult to switch a pension? Navigating the transfer maze

‘If I didn’t work in pensions, I might have simply given up on many occasions

Lisa Picardo
clock 08 April 2025 • 4 min read