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Raising of the Pension Age

Yes—that is a good point. I am amazed by Lord Turner's change of stance; perhaps he is positioning himself in the belief that there is going to be a Conservative Government. I am particularly amazed by that change given that there has been a recession in the interim. Let us be clear: the Tories now see the raising of the pension age as a budget deficit measure. Deficit reduction drives their policy on raising the pension age. However, why should workers ready for retirement be denied it and have their financial security removed from under their feet to meet the cost of an economic crisis caused by the bankers? The commission used the "living longer" argument to justify bringing in a longer-term change in the pension age, but that argument is deeply flawed. The situation is not helped by the fact that the actuaries who peddle that position have a vested interest, because insurance companies, big business and the Government, who want to cut bills, are their main clients. Living longer is mixed up with issues related to healthy ageing, but let us be clear about the "living longer" argument. Recession, with its unemployment and poverty, reduces life expectancy. I am acutely aware of the fact that that was what a report said about people who have insufficient money in retirement, given that it was in the same week that the House unfairly docked my £65,000 resettlement grant. We should just look at the example of Russia's transformation to capitalism. The economic collapse cut life expectancy by a huge amount. Under the Tories, we had three recessions, at least two of which were incredibly deep, and we have now had an awful recession under Labour, thanks to the bankers. Although it is true that the NHS, which has been well funded until now, has kept many more people alive, it is likely to have to endure a period of cutbacks which, if the Tories are elected, will probably be severe. As regards employment rates for those aged between 50 and the statutory pension age being on a gradual upward path—I stress the word "gradual"—during good economic times, the first Turner report said:""The absence of major macroeconomic shocks comparable to the recessions of the early 1980s and early 1990s has meant that fewer workers in their fifties have been made redundant; while for those who have faced redundancy, the general tightness of the labour market has made re-entry into the labour market easier"—" well, not now, and that should be taken into account. The Turner commission's first report said:""The recently launched English Longitudinal Study of Ageing…will provide a far better evidence base on the impact of ageing, but unfortunately not for many years."" On health and ageing, it said:""Analysis on this issue is frustratingly incomplete…From these data we simply do not know what the truth is."" One key point that the report made was:""Major inequalities in life expectancy and health between socio-economic groups may make across the board increases in retirement ages infeasible and inequitable, unless those differences erode over time."" However, there is no sign that they are likely to erode significantly over time. The report did, however, state that early inactivity for men aged 55 to 59 is concentrated in the lowest two and the highest wealth quintiles, with the lowest two quintiles describing themselves as sick or unemployed. The Pensions Policy Institute pointed out that""there is a significant transition from full-time or part-time employment into 'inactivity' past age 59. Approximately 80 per cent. of men aged 55-59 are in employment, falling to 60 per cent. aged 60-64, and only 20 per cent. aged 65-69."" Let us say it as it is. For most people over the age of 65, and sometimes earlier, the workplace is an incredibly hostile environment, particularly for those in the lower wealth quintiles. That will not be changed any time soon. I favour people being able to work longer. That is what the Work and Pensions Committee said in its report, and the law should be changed to make that possible. However, it should be a matter of choice, not a question of forcing people to do so when they are being denied the financial security of a pension.