Today's News | Sport | Features | Email Contacts | Letters | The Tele | D C Thomson | Annuals | Subscriptions | Old Dundee

Headlines
Sport Stories
Get the Tele from...

25 July 2005
Pension age increase ‘a bad idea’
An advocate for elderly people in Dundee today hit out at plans to make people work until they are 67 before they receive a state pension, writes Graeme Strachan.
Age Concern advocacy officer Ian Borthwick said the proposal, in a new report from the Institute of Public Policy Research think tank, was a “bad idea”.

He said the public mistrusts the Government on pensions, and will be difficult to win over.

The report, published today, argues that some time between 2020 and 2030, the age when the state pension is first received should rise to 67.

The report states that increasing the state pension age is vital if the UK pensions system is to remain sustainable and cope with the pressure of an ageing population.

“I think there has to be established the right to continue working if people wish to do so and are able to, but from surveys recently conducted people are not committed to working beyond retirement age,” said Mr Borthwick.

“However, many are forced into working beyond retirement because they haven’t had an opportunity to build up an adequate pension, and, because of financial circumstances, go on working.

“Increasing the pension age is a bad idea. There is clearly a great gulf between those who are stating the retirement age should be increased and those who are at retirement age.”

Many say they do not intend to rely on the state pension and plan to retire at 65, the study found.

But they are hostile to the suggestion they might have to work longer before collecting a state pension, and they feel they should be able to choose when and how they retire.

Mr Borthwick called for better state pensions for everyone in Scotland over the age of 65 and an end to means tested pension credits.

“There is a scepticism and distrust based on their experiences of failure of many private pension schemes and the value of pensions deteriorating quite rapidly,” said Mr Borthwick.

“There must be another way to ensuring that older people live securely with dignity and have an adequate pension.”