View more on these topics

Government urged to link state pension to longevity

The state pension system will become financially “unsustainable” unless the Government sets a higher pension age and introduces a link to earnings or longevity, a research paper warns.

The paper, produced by the Oxford Institute of Ageing and longevity consultant Club Vita, says introducing a variable state pension age would acknowledge the wide variations in life expectancy across the UK. The research also casts doubt on the affordability of a flat-rate state benefit, suggesting additional reforms will be needed to ensure the system remains sustainable.

Club Vita longevity consultant and report co-author Steven Baxter says: “The Government’s reform proposals are welcome, but without additional measures we risk the system becoming unviable.

“We should also consider such measures as splitting the proposed flat-rate universal pension into two distinct elements. These would comprise a basic ‘universal’ support amount and a modest ‘reward’ level that provides a top-up in return for recognised economic activity.”

Last month, Money Marketing revealed the state pension green paper had been delayed as Government officials struggle to resolve how to treat people who have accumulated contracted-out benefits in Serps and the state second pension. There are also concerns about the impact higher national insurance contributions will have on public sector workers.

Recommended

15

The FSA promotes the banks at the expense of a strong IFA sector

The comments made by FSA chief executive Hector Sants and chairman Adair Turner at the Treasury select committee hearing in November were revealing. Sants said the loss of 11-20 per cent of IFAs due to the retail distribution review was “acceptable”. Turner said: “The commission bias IFAs are operating under has led to the pension […]

M&G’s Leaviss warns that BoE could be on the brink of policy error

M&G head of retail fixed interest Jim Leaviss has warned that the Bank of England could make a policy error  by hiking interest rates in the near future. Leaviss believes we may be seeing a re-run of the 1993/94 economic scenario, when bonds rallied hard in 1993 before the Fed unexpectedly hiked rates in February […]

1

Capita replaces Defaqto for SimplyBiz members

SimplyBiz has partnered with Capita Financial Software to offer members free product and fund research. SimplyBiz members were previously offered access to Defaqto’s Aequos system. Under the three-year deal members will receive free licences for Capita’s Synaptic research suite and a licence for Capita’s quotation and application portal Webline. The deal will see over 1,500 […]

9

Barclays ‘engaging in tax avoidance on a grand scale’, says TSC member

Barclays CEO Bob Diamond has side-stepped a request to commit to reducing the number of subsidiary companies Barclays operates in tax havens to demonstrate it will abide by the spirit of the Government’s code of tax practice. During Diamond’s evidence session at the Treasury select committee this morning, Labour MP and TSC member Chuka Umunna […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. A Longevity factor? That will be one way to ensure the widening of the North / South divide as people gravitate to the S.East.

  2. The average age when a person dies should be used to determine policy and not estimated ages, for the current generation, which are being used to justify taking pension money from those who have earned it. I am 48 and the CSO shows that people of my age will – on average – will live to 77; not 86. Those making up this longevity nonsense – i.e 1 in 6 will live to be 100 – are often well looked after and are following extreme right-wing ideology.

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