How to update the UK’s pension structure in changing times? A new proposal from the Tony Blair Institute for Social Change sees the replacement of a one size fits all set pension age with a flexible system. People would receive “Lifespan Funds” which they could draw on for defined purposes when – effectively a loan againist their future pension should they need to take time out from work to act as carers, for example – and which could be rebuilt with higher contributions on return to employment. The Institute argues one reason a radical shake up is needed is the liikelihood will mean more frequent job changes and retraining and because the cost of the current system is projected to soar fom around 5 per cent of GDP today to 7.8 per cent by 2070.
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