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Raising of the Pension Age

I thank the Minister for that clarification. I have no problem with what she says. Again, the emphasis tends to be on the average, but I am more than happy to accept the figures. However, we should remember that the average covers an incredibly wide range of people. My point is that we should ensure that the system cares for the individuals, whether before or after retirement age. We must emphasise that, and remember that there is a wide range of ages. I found the Library briefing on the pension age useful. It states:""An increase in State Pension age would also reduce long-term public expenditure. However, it would disproportionately affect lower-income people who rely more on state benefits in retirement. The same people tend also to have lower life expectancies, and so, with fewer years in retirement, they would see a disproportionate reduction in their income. The effect might be particularly severe on those who have done manual work for long periods in heavy industries, in which there is a record of low life expectancy."" The reality is that some of those at the top—that includes people such as my mother who have increased life expectancy—is not matched across the board. The type of work that one does is clearly a factor. I am an accountant and a Member of Parliament, and I could work until the age of 70. However, those in very physical jobs cannot do so. Another question is whether people can afford to retire. It is clear that people have not been saving enough, and that things are going to get worse as pension schemes close or benefits are cut. We have already touched on the fact that companies might do the minimum compared with what happened in the past, when many did a lot more than that. The danger for society is that the strongest will grab the most, and the most vulnerable will be left behind. The gap between rich and poor will get wider. Some of the figures in a recent report on inequality jump out dramatically, although the report was quite lengthy, and I admit that I did not consume every word of it. It said that the 10th richest percentile of the population have 96 times the wealth of the 10th lowest percentile. That gap has become wider over the last couple of decades. The report states that the top 10 per cent. of the population have average wealth of at least £853,000 and that the lowest 10 per cent. have £8,800 at the most. That is an incredible gap, and it is not acceptable. Society will have to consider whether it is acceptable for the gap to become even wider. I return to the Library briefing. It cites a review of the Oxford Review of Economic Policy by Professor Nicholas Barr. He said:""Raising retirement age has analogous regressive effects, since workers from poorer backgrounds typically start work earlier and hence make contributions for longer, but have a shorter life expectancy than better-off workers. It can be argued that pension design alone cannot solve problems of wider inequality, which require a broad range of policies including nutrition, health care, occupational safety, and education and training. But at a minimum it suggests a potential role for other instruments, notably disability pension, to reduce regressivity."" We must consider how much compulsion there is to save. Other European countries and Ireland have recently said that they are moving in that direction. It would obviously mean employers having to contribute, as well as employees. Some have suggested that educating people to save more would be sufficient—that we should explain to people that they need to save more for their retirement. It seems to me that the reality is different. For example, young people across the board, no matter what their background, have a tendency not to think of retiring. That is human nature. Another reality is that those on limited incomes are not able, even if they are willing, to put much aside.