Research by Axa has found that the state pension system is too complicated for the average person to understand, according the majority of independent financial advisers (IFA's).
The report showed that nearly three quarters of IFA's wanted a 'fundamental overhaul' of the system, with 80% saying it was too complex for consumers. Only 3% believed that the current structure should be left as it is.
When asked what changes should take place, two thirds said that the state second pension should be abolished, with the savings going to fund a more generous basic pension. More than half called for the scrapping of contracting out, and three quarters wanted qualifying rules for state pensions to be simplified.
Almost 60% said that the system of means-testing benefits made it difficult to provide clear advice, particularly for those on low average incomes.
Our view
The State pension system is the envy of the World, it is a fantastic scheme and, in our opinion, a very good one.
It is just that it is too good a value for money scheme i.e. this country cannot afford to keep it as people do not pay enough into it.
Learn more about State Pensions in our State Pensions centre.