State
pensions need a major overhall, according to researchers who spent 18-months
investigating them.
The
report by the Institute of Public Policy Research, a centre-left think-tank
whose recommendations often closely mirror Labour policy, says state pensions
should be linked to average earnings.
Entitled
A New Contract for Retirement, it also proposes raising state retirement age to
67 and scrapping the state second pension.
The
IPPR said means-testing to top up pension payment is "flawed" and
should be scrapped.
However
Government has labelled the report "simplistic and misguided".
Work
and Pension secretary Alistair Darling said IPPR proposals were unworkable.