The Government is considering the feasibility of a flat-rate state pension based on residency.
The 'citizens pension' was just one of the possible changes to the state system suggested in a Department for Work and Pensions paper, published this month, and is based on the New Zealand state pension system which pays out a basic weekly income to all retired people. The report stated that too many women and carers are missing out on adequate pensions because they were unable to afford private provision or top up their state scheme.
According to Government figures, around 1.4million female workers are not earning enough to pay national insurance contributions, compared to 0.5million men. The paper also set out five other criterions that needed to be considered. They included reforms that must tackle poverty effectively, building an adequate retirement income for all, and sustaining public pensions provision.
Our view
State pension provision in the UK, whilst many bemoan it, is one of the best in the World. Anything that can offer more can only be good.
More about State Pensions in our State Pension Centre.