This report urges the coalition government to remove imbalances in the tax system between young and old. At present, the richest pensioners pay far less tax than people of working age on the same income. CentreForum proposes that the government should phase out the tax free lump sum and end national insurance exemptions for affluent pensioners. This would make the tax system more balanced and save taxpayers over £9 billion a year. The savings could be used to raise the personal income tax allowance by £1,700, which is equivalent to a £330 a year tax cut. The report shows that scrapping these tax breaks would only affect wealthy pensioners: two thirds of current pensioner households would be better off or unaffected by the proposed changes.