Current State Pension Not Fit For Purpose

by Dr. Ros Altmann

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DWP highlights £200 per week difference but should also point out that men get the most and women the least

State pension system must stop penalising women and make it safe to save

Dr Ros Altmann, Director-General of Saga, comments: “The UK state pension system is the by far the most complex in the world. Almost no one understands it and it is not fit for purpose. It fails to provide an adequate pension income for millions of Britain’s pensioners, particular women and low earners. Radical reform long overdue – at the moment the UK State pension system relies far too much on mass means-testing which particularly penalises those who have tried to save for their retirement. As we are about to automatically enrol all workers into a private pension scheme, it is vital that the state pension system makes it safe to save.

“DWP figures released today highlight the dramatic difference with some pensioners getting £200 per week more state pension than others. The reality is that it is predominantly men that get the highest amounts and women the lowest.

“We welcome the prospect of a adequate state pension that would lift most people above means-testing. The new pension system should be fairer and simpler and no longer treat women as second class citizens but we still need to see the details of the new framework and how the Government plans to implement it in order to ensure fairness.”

Dr Ros Altmann had produced a briefing paper on what people can expect from the Government’s State Pension White Paper which can be found on the Saga site: www.saga.co.uk/money/pensions-and-savings/white-paper-pension-reform.aspx