View more on these topics

Citizen’s pension is branded ‘derisory’

The Pensions Reform Group, founded by Labour MP Frank Field, has attacked the concept of a 105 a week citizen’s pension as a derisory benefit that will leave pensioners in poverty.

The attack came in the same week that Work and Pensions Secretary Alan Johnson promised to investigate a citizen’s pension in a strategy document called Principles for Reform.

PRG director Ben Forsyth told conference delegates that 105 a week is too low and significantly below the officially recognised poverty line of 120 a week or less than 60 per cent of median household income.

The PRG proposes what it calls the universal protected pension, which would pay between 120 and 145 a week to all pensioners.

Forsyth conceded that paying a pension at this level would entail a 5 per cent increase in employee National Insurance rates and that sufficient funds to pay out the benefit would not be built up for 40 years. In the meantime, a percentage of that amount would be paid.

Liberal Democrat spokesman on pensions and treasury policy Lord Oakeshott said: “A 5 per cent tax increase and 40 year maturity period shows Frank Field still thinks the unthinkable.”

Forsyth said: “A citizen’s pension at 105 a week would be below the level of poverty whereas the UPP would provide an income of between 120 and 145 a week.”

Recommended

Retitrement is not an option

The spectator sees more of the game than the players and that has certainly been my experience over the last month or two. Following the sale of Charcol, for the first time in 15 years, I had time to sit back before deciding what direction I wanted my career to take.

Independent view

We have recently been considering a new strap line for our business – something bold and eye-catching. For some time, we have considered ourselves to be “better and different” than most other IFAs. Now I know this may sound arrogant but we do not think so.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com