single-tier

A single-tier pension would provide people with clear incentives to save and certainty and clarity over what their state pension will be worth when they retire.

Single-tier state pension 'will benefit poorer retirees' 2011

However, the single-tier state pension would only be paid to those retiring after its implementation, meaning a whole generation of people who have already reached state pension age could be left worse off.

Single-tier state pension 'will benefit poorer retirees' 2011

PPI director Niki Cleal said: "The introduction of a single-tier state pension as proposed by the government of around £140 a week could be broadly cost neutral, but would lead to winners and losers."

Single-tier state pension 'will benefit poorer retirees' 2011

A single-tier pension is likely to be beneficial for some women, carers and some low earners who tend not to qualify for a high amount of state pension in the current system.

Single-tier state pension 'will benefit poorer retirees' 2011

A single-tier state pension would be the equivalent of £140 a week in today's earnings.

Single-tier state pension 'will benefit poorer retirees' 2011

Cleal said: The single-tier pension could place additional burdens on employers and employees in defined benefit schemes in both the public and private sectors, as national insurance contributions would increase.

Single-tier state pension 'will benefit poorer retirees' 2011

However, the single-tier state pension would only be paid to those retiring after its implementation, meaning a whole generation of people who have already reached state pension age could be left worse off.

Single-tier state pension 'will benefit poorer retirees' 2011

A single-tier pension would provide people with clear incentives to save and certainty and clarity over what their state pension will be worth when they retire.

Single-tier state pension 'will benefit poorer retirees' 2011

Cleal also warned that the single-tier option would mean the end of "contracting out", where money contributed through tax to the S2P is transferred into a pension fund of the employee's choice.

Single-tier state pension 'will benefit poorer retirees' 2011

State pension reform proposals for a flat rate single-tier pension could redistribute income from 5 million of the higher earning pensioners to 7 million of the poorest, according to independent research.

Single-tier state pension 'will benefit poorer retirees' 2011