News In Focus
3 July 2009
Pensions reforms "not radical enough"
Lord Turner, the author of an influential report into the future of pensions which was released four years ago, now says his proposals were not radical enough.
"If I was redoing my report I would be more radical, arguing for an even faster increase in the state pension age,” said Lord Turner, who headed up the Government’s Pensions Commission.
The state pension age for men and women will rise to 66 in 2024, to 67 in 2034 and 68 in 2044. Each rise will be phased in over two years.
Lord Turner also suggested that public sector workers should move to more flexible pensions, rather than a final salary scheme.
A number of other recommendations from the commission have become pension policy and law.
They included the view that increases in the state pension age should be linked to rising life expectancy, that the state pension be linked to average wages and not prices, and the introduction of "personal accounts" for those without access to company schemes.