UK should scrap state pensions for the richest 5-10%, says OECD
The UK should scrap state pension payments for the richest retirees, the Organisation for Economic Cooperation and Development (OECD) has said.
The Paris-based think tank has said that slashing payments for the wealthiest 5-10 per cent of people would “free up resources” to raise pensions for the less well off.
Under the current system, every UK citizen is eligible to receive a full state pension once they hit retirement age, providing they have made 30 years’ of National Insurance contributions.
Speaking to the Financial Times, Mark Pearson, deputy director of employment, labour and social affairs at the Oecd, said that an ageing population in the UK was placing a strain on the system as the pool of workers relative to those retiring was shrinking.
“Faced with these pressures, are you going to ask people of working age to pay more, or people to work longer before they can claim their pension?” he asked.
He said that one way “to ease the tyranny of the maths” was to “think about whether the pension should only be paid to those who really need it”.
Full Content: Independent
Remember to subscribe to our free weekly newsletter for more news or subscribe to our service to get unlimited access.
