Keeping pension age static 'would be unsustainable'
Indefinitely keeping the state pension age at its current level of 65 would be unsustainable and it is necessary to increase it over the next forty years to prevent increases in taxes, it has been claimed.
John Hutton, secretary of state for work and pensions, has said that he regards the rise in pension age to 68 by 2046 is perhaps the most notable part of the forthcoming pensions bill.
"As unpopular as it may be to talk about working longer - the simple fact is that if we aren't prepared to increase the state pension age, we will simple pass an ever greater and frankly unsustainable burden onto our children and grandchildren," he said.
Mr Hutton added that for the new pension system to be successful it must rely on knowledge from the private sector, noting that it is likely that the delivery of personal accounts will be managed by businesses.
This week the Association of British Insurers laid out five economic tests it feels personal accounts must satisfy to be considered a success. These included producing more savers, higher amounts of saving, competition in the market, satisfactory delivery and an aversion of poor planning.
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