The National Association Of Pension Funds is about to commence the mammoth task of reviewing and making changes to the current State pension system.
The idea is for the current means-tested system to be scrapped and then replaced with a new universal pension system. The universal pension system will apparently not be means-tested but based on a residency test. Basically, the longer you have been resident, the more you will get.
Our View
The NAPF believes that if the State pension age was raised to 70 by 2030, British citizens could receive a State pension equivalent to 22% of National Average Earnings, at no extra cost.
For now, this is all pie-in-the-sky but any serious commitment to revamp and improve the State system should be welcome to everyone.