UK basic state pension low by world standards: OECD

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The level of the current basic state pension is low in comparison with other mandatory schemes in the developed world, claims a report from the OECD.

The report, called Pensions at a glance: UK, said that at 16 per cent of average earnings the current level of benefit is low in comparison to many countries, with the OECD average being equal to 20.5 per cent.

But the value of the pension credit safety-net benefit is around the OECD average.

The report concluded that the introduction of the new state pension from April 2016 should increase the basic pension for the majority of future pensioners.