State Pension Replacement Push

State Pension Replacement Push

The government is being urged to abolish state pension and replace it with compulsory defined contribution (DC) pension to help hit debt target of 20% of national income by 2064.

A publication from Institute of Economic Affairs (IEA) says that replacing state pensions would help stop national debt from hitting unmanageable levels. They argue that government finances are on a path to unattainable levels and recent decisions have worsened the situation.

Despite this, other comments say that committing to raise the state pension age and switching to the Consumer Price Index (CPI) linking in public sector would reduce state pension spending.

The report made a number of suggestions of achieving spending cuts to reduce government spending.