National Association of Pension Funds, London, is calling for major U.K. pension reform, including a proposed "citizen's pension," an earnings-linked, flat-rate benefit of L100 a week for all pensioners, according to a report published today. The NAPF also would raise the retirement age to 70, from 65. Other recommendations include: providing more generous tax treatment for long-term savings; lifting rules that limit individuals to only one pension scheme; allowing employees to work for the same employer while drawing down part of their pensions; and removing restrictions on scheme contributions or withdrawals.
"Today's pension system is weighed down by red tape, jargon and complexity," said NAPF Chairman Peter Thompson in a statement. "Because of this, too many of today's workers put off thinking about pensions, storing up potentially massive problems for the future."