It occurred to me that it's ridiculous having a weekly 25p age related addition from age 80. In fact it's a bit of an insult. This should be increased to £60 a week so that we can all look forward to a £200 per week State Pension from age 80. Why? Well I would argue that more longevity risk should be shouldered by society at large, rather than insurers and pension schemes; or individuals drawing down income hoping to stretch their pension savings.
What do I mean?
Well, it would be more affordable (and encouraging for modest savers) if temporary annuities could be purchased from age 65 (or 68, or 70) which would provide a higher income to age 80 - and then the State Pension £60 per week age addition would kick in providing a decent income to those in our society that have reached an age whereby they shouldn't be worrying over the pennies - whether to buy food or heat.
This is a form of integration with the State Pension and depending on how many over 80s we have - it may just be affordable. It would be cheap to administer too.
What do you think?
Campaign for fair charges... plus more on pensions and topical personal finance issues. Views expressed are mine alone. Some articles are quoted from other sites and this is made clear with the source gratefully acknowledged.
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Ingenious - I wish you were pensions minister!
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