An assessment of the Governments options for state pension reform: PPI/NAPF
The NAPF commissioned the PPI to provide an independent, evidence-based assessment of the two options for reform of the UK state pension system put forward in the DWP’s Green Paper A state pension for a 21st Century.
In the Green Paper, the DWP proposed reforming the state pension system by either accelerating the flat-rating of the State Second Pension (S2P) or by combining the Basic State Pension and S2P into a Single Tier pension set at £140 a week. The PPI looked at who would gain or lose from each option, what the impact would be on Government spending, and at how reforms would affect pension schemes.
The report found that the Single Tier option would be broadly cost neutral over the long term, would reduce the number of pensioners entitled to means tested benefits, and would complement workplace pension reforms by ensuring that everyone knows it pays to save.