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| The
first choice for people
in pensions |
| Turner:
Review was too moderate
By Sophie Baker |
| Lord
Adair Turner has said that the recommendations he made in his 2005
review of the pensions system were not “radical” enough,
particularly in relation to the state pension age. Turner’s initial review said the state pension age should be raised more quickly. As it stands, the retirement age for men and women will rise to 66 in 2024 and to 67 in 2034. In 2044, the Turner Review recommended that the state pension age rise to 68. Each rise is due to be phased in over two years. However, Turner has reportedly told the BBC that during his review, there were arguments that the state pension age should hit 70 years old as early as 2030. He also said that public sector workers should consider moving to more flexible retirement options from final salary plans. A spokesperson for the Department for Work and Pensions (DWP) has hit back at Lord Turner’s claims, stating that “radical” changes are due from 2012: “Our pension reforms will radically and fundamentally change the pensions landscape in the future. As recommended by Adair Turner's Pension Commission, from 2012 automatic enrolment into occupational pension schemes alongside the creation of Personal Accounts will give up to 11million workers the chance to save in a pension with a contribution from their employer for the first time. “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 enjoying a pension based on a career average and a retirement age of 65.” - Pensions Age July 2009
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