The end of the world is nigh

State pension reform

This is the last blog you will ever see from me. Well, at least according to the Mayan calendar it will be, because according to the Mayans the world is going to end tomorrow.

We are still awaiting the promised white paper on state pension reform promised before Christmas. So the Government is going to have to get a move on, especially if the Mayans are right.

The Government is known to be considering plans for a universal state pension of around £140 a week. Under the current system a single person gets a pension of £96 a week. A range of extras are meant to guarantee a minimum weekly income of £132.60 but due to the complexity of the rules many people do not receive this.

The introduction of the £140 per week universal state pension is supposed to be on a cost neutral basis, so there have to be as many losers as there are winners, which is politically awkward for the Government.

The Government might of course issue the paper on Christmas Eve. It would then be old news by the new year.

However if the Mayans are right they may not have to issue it at all, and we are all going to look pretty silly tomorrow. But if not I will be back with a new blog in the first week of January.

Fraser Smart
Managing Director, Europe
Buck Consultants