UK pension system 'unrealistic'

Many women have disrupted work records

Recent reforms to UK state pensions will be of little use to many Britons, a report has concluded.

This is because the pension system is still biased towards working people on a good income.

People who have disrupted work records, such as women, disabled people or ethnic minorities are disadvantaged, the Pensions Policy Institute said.

The think tank said the state pension should be reformed so it was fair to all groups in society.

Earnings link

The amount of state or private pension someone receives depends on the amount of money they earn and time spent in work.

Women, disabled people and ethnic minorities are more likely to have disrupted careers or work part-time, and will therefore have lower earnings.

This has been dubbed "under-pensioning" by the Pensions Policy Institute.

Even the recently introduced State Second Pension and Pension Credit will not fully compensate under-pensioned groups, the report concluded.

"The structure of the UK pension system means that any group with low earnings or an irregular employment record will lose out in retirement," said the report's author, Chris Curry.