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NAPF in call for &#39universal pension&#39 with tax incentives

The NAPF is urging the Government to replace the existing tangle of State provision with a pension worth £100 a week from age 70.

The basic state pension, state second pension, minimum income guarantee and pensions credit should be dropped in favour of a universal “citizen&#39s pension” of 22 per cent of average national earnings, currently around £23,500, with improved tax incentives for those who want to save more.

The NAPF says the inc-reased universal pension would avoid the necessity of compulsion and drastically reduce costly means testing that is predicted to cover two thirds of Britons by 2020 under the current framework.

It says its proposals would simplify advising consumers on buying pensions.

The proposals would not cost the Treasury any more provided the Government was prepared to bear the political risk of increasing the state pension age to 70 by 2030.

It wants to see a change in priority on scheme wind-ups and says the Government should look at an industrywide compensation scheme for final-salary schemes.

NAPF chief executive Christine Farnish says: “The nettle of an ageing population will need to be grasped some time so people can start planning for what is an inevitability. We need to simplify pensions and create an enabling environment through incentives and deregulation.”

Scottish Equitable pensions development manager Margaret Craig says: “How likely is it that the Government are going to raise the retirement age to 70?”

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