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A Citizen's Pension

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Abstract

A Citizen's Pension (CP) is a Citizen's Income for older people, payable on an individual basis to citizens, regardless of gender, current or past employment or marital status, living arrangements or income. A particular advantage of a CP at an adequate level is that it has the potential to lift most pensioners clear of dependency on means-tested benefits. The stigma and inconvenience associated with means-testing would be replaced by an assurance of an adequate, regular income that is an automatic right based on citizenship. This paper concentrates on the financial aspects and implications of the introduction of a CP. Using the microsimulation model, POLIMOD, it estimates the cost of various forms of CP and explores a range of methods for financing it. The paper examines the distributional impact on pensioners and on the population as a whole, focusing particularly on the burden of financing and on the gender impact of the CP.

Suggested Citation

  • Sutherland, H, 1998. "A Citizen's Pension," Cambridge Working Papers in Economics 9824, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:9824
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    More about this item

    Keywords

    Pensions; Pensioner incomes; Citizen's pension;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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