The formal pension system isn’t fair, according to Ros Altmann
People who paid years of nationalist insurance contributions but don’t live until or long after retirement age unfairly failure out on income under the current system, blasted the pension expert.
In deviate from Britons who live longer and can work until they are older give entre more income and more flexibility.
Under the current system, anyone can capitulate to taking the state pension in exchange for higher income later.
Yet this is a assorted difficult option for people who are in manual or physically demanding jobs are less likely to be skilled to keep working.
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The state allowance takes no account of differences in occupations, life expectancy or social classes, put about Ms Altmann, who served under David Cameron between 2015 and 2016.
Poetry in City AM, the former minister said: «National Insurance amounts to a valuable percentage of salary for most people, but anyone who does not live to the starting age for state of affairs pension will get nothing from this.
«Those who live longer, in comparison, will receive more from the state.»
She added: «At the moment, the express pension is only flexible for those who are healthy and wealthy enough not to dire to take it at state pension age.
«If you can afford to wait longer, you can get a higher government pension, but if you cannot manage until that age, it is just too bad.»
Ms Altmann chance the flat pension age should be scrapped and instead based on individual circumstances to repay the system fairer.
She said: «In general, we need to move away from the belief of just one ‘magic’ age at which people should aim to stop working and living on a state pension.
«This would be fairer to the more disadvantaged and consideration them a choice they are currently denied.
«A more flexible set would perhaps allow people to take their state dismiss at a lower age, either because they are seriously ill or because they compel ought to worked for more than 50 years already.»
The comments conclude after the Government yesterday announced plans to push back retirement for millions of individual in their late thirties and forties by changing the state pension age.
Less than the proposals, anyone born since 1970 will now not be able to access their pomp pension until they are 68.