The Pensions Policy Institute, a think-tank group, has made calls on the Government for a shake up of the current State Pensions System. This follows analysis of the new Pension Credit that starts on the 5 October 2003, replacing the Minimum Income Guarantee.
They suggest that the State Second Pension, the top up over and above the Basic State Pension, should be scrapped and a more generous Basic State Pension offered.
Our view
Whilst the call is admirable, it is not something that we believe the Government will action. The population is ageing and running the State Pension system is increasingly more expensive.
We can only see things worsening over the longer term and perhaps introducing more means testing. The Basic State Pension is not means tested whereas MIG and the new Pension Credit is.
Learn more about State Pensions, MIG and the Pension Credit in the new State Pensions Centre in the Pensions Adviser.com.