THE state pension will have to be means-tested for pensioners to keep it affordable, research suggests.
Under the current rules, the state pension can be claimed by all, irrespective of wealth with access to the payments being given when the person reaches retirement age and provided they have a record of national insurance contributions.
The Government says an ageing population – relative to those of working age – is putting pressure on the current pensions system, changes are necessary. It has led to the Government considering speeding up the current timetable of pension age rises.
Wealthy pensioners could be means-tested over their income in the future
Increasing the state pension age has a much greater impact on the least well off — and they are the ones who are most dependent on this benefit
One independent review last year even recommended speeding this up to bringing the age up to 68 by 2037-39.
But in the 50-page report ‘Surfing the Tsunami: A Plan for State Pension Reform’ published today, academic Professor Paul Sweeting says speeding up of the state pension age rises are unlikely to keep a lid on pension spending in the long run. It would have a greater impact on those who need the payments the most, he said.
Prof Sweeting said: “For some years the affordability of the UK state pension has been an issue.