Call to overhaul UK state pension The UK pension system has been branded inadequate and too complex by a leading retirement think-tank. The Pensions Policy Institute (PPI) said replacing the state pension with a "citizen's pension" would help tackle inequality and complexity. The change would see pensions being calculated on length of residency in the UK rather than National Insurance (NI) contributions. Reform could reduce poverty by aiding people with broken employment records. The PPI added that once the state system was reformed the government should look at options to overhaul private and workplace pensions. The think tank's proposals were made in response to the recent publication of the Pensions Commission's initial report into UK retirement savings. According to the Pensions Commission's report 12 million working people are not saving enough for their retirement. As a result, living standards could fall for the next generation of UK pensioners. The report added that a combination of higher taxes, higher savings and/or a higher average retirement age was needed to solve the UK pension crisis.