The Tony Blair Institute<\/a> has issued a new report calling for the state pension<\/a> to be replaced with a \u201cLifespan Fund\u201d that it claims is \u201cbuilt for longer and more fluid lives\u201d.<\/p>\n It argues the state pension<\/a> is \u201coutdated, increasingly unaffordable, and too rigid for the way people live and work\u201d because it concentrates state-supported income support at retirement.<\/p>\n The triple lock is a government guarantee to increase the state pension<\/a> each April by the highest of three metrics \u2013 average wage rises, inflation<\/a>, or 2.5 per cent.<\/p>\n This is intended to protect pensioners\u2019<\/a> incomes over time and is highly valuable to recipients. Critics say it is no longer affordable, but politicians have been loath to commit to changing it, given its popularity with older voters.<\/p>\n The full state pension<\/a> is worth \u00a3241.30 a week, or \u00a312,548 a year.<\/p>\n Defenders of the state pension note that the money paid out is spent back into the economy<\/a>, which supports growth, but the TBI claims \u201creform is now unavoidable\u201d since the number of pensioners<\/a> will rise from 12.6 million now to 19 million by 2070.<\/p>\n The cost to the state could rise from 5 per cent of GDP now to 7.8 per cent by then \u2013 an extra \u00a385bn a year.<\/p>\n In a recent report from Almond Financial, Britain had the 13th most generous state pension in Europe. Luxembourg was top, followed by Norway, Spain and Malta.<\/p>\n Get a free fractional share worth up to \u00a3100. Terms and conditions apply.<\/p>\n Go to website<\/a><\/p>\n ADVERTISEMENT<\/p>\n Get a free fractional share worth up to \u00a3100. Terms and conditions apply.<\/p>\n Go to website<\/a><\/p>\n ADVERTISEMENT<\/p>\n Tom Smith<\/a>, director of economic policy at the Tony Blair Institute<\/a>, said: \u201cBritain\u2019s state pension system was built for a different era. We can\u2019t keep pouring money into a system that is increasingly unaffordable. Pension spending must be contained, and that means the triple lock cannot continue after the next Election. <\/p>\n \u201cEnding it will require political leadership from all parties \u2013 but that should only be the first step. Real reform must also build a better system: one that is fairer, more flexible, and designed for how people live today.\u201d<\/p>\n![\"Trading](\"https:\/\/static.independent.co.uk\/static-assets\/images\/mobile-stores\/Trading_212.svg\")
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Capital at risk.<\/p>\n<\/p>\n
Capital at risk.<\/p>\n