10 February 2006
Work and Pensions Secretary John Hutton this week warned that a rise in the basic state pension age is 'inevitable' – the first firm indication that his forthcoming retirement proposals could contain such plans.
Hutton told the Work Foundation think-tank on February 7: 'As unpopular as it may be to talk about working longer – the simple fact is that if we aren't prepared to consider the option of increasing the state pension age, we will simply pass an even greater burden on to our children and grandchildren.'
Hutton is considering the government's response to the review of the UK's pension system published by Lord Turner's Pensions Commission last year, and is due to publish his own plans in the spring.
Turner, who also spoke to the Work Foundation, has proposed raising the basic state pension age from 65 to at least 68 by 2050, establishing a low-cost national pensions savings scheme and increasing state support to pensioners.
Turner claims the measures would combat problems with Britain's ageing population and the fact that up to 11 million people are not saving enough for an adequate retirement.
Hutton, who has welcomed Turner's study, has made it clear that people would accept such an overhaul only if total basic pension provision improved – yet he must convince a sceptical Chancellor Gordon Brown to free more resources.
PFfeb2006
