03 July 2009
Lord Turner who produced the 2006 White Paper on pension reforms
has stated that he now believes that his proposals were not radical
enough.
He said, in an interview with the BBC, that in hindsight he
would now argue that the age at which people received a state
pension should have been raised to age 70.
The state pension age for men and women is due to rise to 66 in
2024, to 67 in 2034 and 68 in 2044. In between these days the age
will be phased in proportionately.
Lord Turner said "If I was redoing my report I would be more
radical, arguing for an even faster increase in the state pension
age," he said.
He also intimated that public sector schemes should move away
from current final salary provision. "We have to make it
sustainable and we have to make it fair. I think it should move to
average salary from final salary," he said.
A spokesman for the Department for Work and Pensions said: "Our
pension reforms will radically and fundamentally change the
pensions landscape in the future. Our bold changes to the state
pension system respond to the demographic changes in society. They
will ensure the state pension system is sustainable and affordable
for the future."
"We have also taken steps to reform public sector pensions to
ensure they are affordable into the future. These include ensuring
new entrants to the civil service enjoy a pension based on a career
average and a retirement age of 65."
The full article and a video interview is available on the BBC
webpage here: Lord Turner Interview
