A group of pension experts has launched a new blueprint aimed at improving the UK’s pension scene.
The National Association of Pension Funds’ (NAPF) wish list, entitled Fit for the Future – NAPF’s Vision for Pensions, includes a recommendation to introduce a Foundation Pension worth up to £8,000 per year.
According to the organisation, the move could lift as many as two million pensioners out of means tested benefits.
NAPF chief executive Joanne Segars said: "Our proposals are designed to create a pension system which is fit for the 21st century.
"They increase the value of the state pension for everyone, radically reduce concerns over means-testing and increase the value and quality of workplace pensions."
Pension schemes have long been the traditional form of retirement income in the UK.
In recent years, however, many Britons have chosen other options such as equity release policies to provide additional funds for their future.
