Age UK: Simplification is needed

Michelle Mitchell, charity director of Age UK, said in response to Iain Duncan Smith’s proposed changes to pensions:

“Sweeping simplification of the state pension system is needed so that everyone can expect a decent, flat-rate pension, set at a level high enough to help most people avoid poverty without recourse to means-tested benefits.

“Means-testing is failing older people, with an estimated 1.6million pensioners not claiming the benefits to which they are entitled and so living in needless poverty. Meanwhile, with such a complex system, people in work are totally confused and often worry that saving will not be worth their while. By developing a system that lays out clearly what people can expect, the government will reduce fear for those approaching retirement.”