Calls for citizens' pension intensify

Two leading pension bodies have called for current pension arrangements in the UK to be replaced by a "citizens' pension" worth 105 per week.

13:44 06 December 2004

Two leading pension bodies have called for current pension arrangements in the UK to be replaced by a "citizens' pension" worth 105 per week.

According to a joint study by the National Association of Pension Funds (NAPF) and the Pensions Policy Institute (PPI), the scheme is affordable, simpler to understand and could be implemented within six years.

Millions of pensioners would benefit from the new universal payment - in particular women who miss out on the full state pension because of breaks in their work record caused by bearing children stand to gain.

Under the proposals everyone would receive 105 per week with any savings made by the individual not affecting that entitlement.

NAPF chief executive Christine Farnish explained that such a system would clarify state pension provision and provide an incentive to save.

"Immediately, the deal from the state is clear," she said. "Anyone wanting a better income in retirement understands the need to make additional saving, either through a workplace pension or some other means."