UK State Pension Scheme Overhaul is Necessary To Show “Moral Leadership” – Reform Scotland
According to Scotland’s organisation, the UK’s state pension rules must be changed to show moral and political leadership in the UK government. Reform Scotland said that given the pensioner population growth in the next 25 years, the current situation must serve as a “reality check.”
The organisation presented a Pensions Guarantee proposal that highlights necessary changes. These overhauls will help “simplify the system” through a complete renovation. It was first published in 2014. Their proposal involves trashing the National Insurance and putting in place a compulsory system that deducts payments from income in a defined contribution scheme.
According to Reform Scotland Chairman Alan McFarlane, politicians are involved “in a conspiracy of silence.” He said the National Insurance is “nothing more than income tax” that sounds positive. However, current taxpayers are still addressing previous pensioners’ benefits and had done so since the state pension invention.
McFarlane said it is fairer for taxpayers because in this way, they can pay for their own. Many employees with huge contributions are complaining about paying the pensions of retirees. It also gives pensioners guaranteed dates and amounts for their pensions.
The UK’s state pension laws have a “triple lock” guarantee that provides benefits for retirees who have worked from the 60s to 90s.