Under this model, a 45-year-old worker on an average salary would pay around £1,200 in contributions per year, or £100 a month.
The report did not recommend this catch-up payment approach. Instead it warned against the higher tax rates which were “unlikely to offer the most deliverable route to reform” by targeting workers whose incomes were already stretched by the cost of housing and childcare.
It said more burdensome taxes on workers older than 34 would become “increasingly hard to justify and more likely to create undesirable knock-on effects such as reduced disposable income, weaker consumption, and lower wider economic activity”.
Dr Simon Kaye, director of research at Re:State, said: “If a government wanted to speed up the transition, they could ask older workers to pay a higher rate – we are clear that we don’t think that would be the right answer, and there is no suggestion this government will do so, but that is a political choice.”
A government spokesman said the report was not linked to its plans for social care.
A statement said: “This report, and the proposals it contains, have nothing whatsoever to do with the government, and it is complete nonsense to suggest otherwise.”
