Ross Clark Ross Clark

Snatching state pensions back from the rich would end in disaster

While Theresa May makes her mind up over the triple lock on state pensions the OECD has come up with an altogether more radical suggestion: that the state pension be withdrawn entirely from the richest five to 10 per cent of the population, in order that more money be available for the poor. I am not sure that the purpose of the OECD ought to be to try to micromanage the fiscal policies of member states, but let’s treat it seriously nonetheless. Snatching the pensions of the better-off would be disastrous policy which, by destroying the disincentive to save, would achieve nothing other than to boost the numbers of poor people requiring assistance.

The state pension – which is worth £8297 per year to anyone retiring from now on – might seem a pittance compared with the income of the very rich.

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