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?
Ingenious - I wish you were pensions minister!
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