This blog was contributed by Hannah Pearce, Age UK’s joint Head of Public Affairs.
Every few years the government announces its intention to fundamentally reform the pension system once and for all to ensure it is fair and sustainable for current and future generations. Each of these attempts is made with good intentions and with the hope that the changes will last. However a few years down the line the next government decides it’s time to try again. I’m already working on my fourth pension bill since beginning work for Age UK.
Successive governments are compelled to grapple with the pensions system to catch up with societal changes such as increases in life expectancy, changes in working patterns and to counter structural unfairness. For example several of the state pension reforms in the 2007 Pensions Act sought to ensure that the pension system better reflected the lives of women who often have some time out of employment caring for children, older family members, or working part time.
The compelling reasons for reform under the current proposals were to create a system which is intended to be fairer, simpler and more sustainable. Under the single tier system individuals will receive a state pension based on their own contribution record of up to £146 in today’s money if they have a full record of 35 years contributions. Continue reading