'We won't work past 65'

By DAILY MAIL REPORTER
Updated:

 

THERE is widespread opposition to plans to raise the retirement age to 70, according to research.

Retired couple outdoors

The influential Institute for Public Policy Research says workers do not want to put off retirement beyond 65 because they do not expect to live longer than their parents.

The findings will make challenging reading for Tony Blair and new Pensions Secretary David Blunkett as they grapple with the issue.

The IPPR verdict contradicts the preliminary findings of Adair Turner, the businessman leading the Government inquiry into pensions which is due to report in the autumn. He is known to be in

favour of raising the retirement age to 70 as a way of countering the effect of longer life expectancy, which is putting a severe financial strain on the pensions system.

But the Left-leaning IPPR, considered one of the major influences on Government policy, concludes that ministers must do more to persuade people to work longer.

Using a series of focus groups, it found that people still expect to die when their parents did, despite evidence that lifespans are steadily increasing. They believe their health will decline from 70, and see retirement at 65 as sacred.

The IPPR, which calls for the retirement age to be lifted only to 67, says Mr Blunkett must do much more to convince the public.

Peter Robinson, the author of the report, said: 'There is a consensus among pensions experts that increased life expectancy will make it necessary for us to work longer.

'Our research shows that the public are not convinced, and distrust the evidence from employers, the financial services industry and Government, basing their expectations on the experiences of friends and family.'

Mr Turner, who heads the Pensions Commission, has said the retirement age will 'undoubtedly' have to rise to fill a funding gap in pensions said to be £27billion.

Any solution was 'bound' to mean working longer as well as higher taxes and increased personal saving, he has suggested.

The IPPR study found that many people said they plan to retire at 65 and did not intend to rely on the state pension. But they were hostile to the suggestion that they might have to work longer.

Mr Robinson said: 'Raising the state pension age is vital if the UK pensions system is to remain sustainable and cope with the pressure of an ageing population.'

Tory pensions spokesman Nigel Waterson said: 'If the Government expects people to work longer, they need to provide incentives.'

The shadow chancellor yesterday called for public sector pensions to be reduced to pay for tax cuts.

George Osborne said workers in the medical profession, teachers, civil servants and even ministers should be made to work until 65 to ease the burden on the state.

'It's not right to say people in the public sector can retire at 60 and receive generous pensions while people in the private sector have to wait till they're 65.'

• READ answered queries and ask for personal advice in Ask an Expert: Pensions.

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