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Raising of the Pension Age

At this stage, I am simply saying that we need to consider it. Other countries are certainly considering it. My personal thoughts would lean in that direction. However, it would have to be tied in with the minimum wage, which at present is far too low. We cannot expect people to save from such a limited income. However, some very profitable employers are not contributing to their employees' well-being both in the sense of the minimum wage and the pension contribution. I am happy that the Government have moved forward in some ways, but, as a society, I fear that we are putting too much emphasis on the individual's choice. Although, on the whole, I support individual choice, we as a society have to pick up the pieces, and we need to look at how much people are saving. As life expectancy increases, the spread gets wider, too. Some people in society might retire at 70 and then live for another 20 years, and that would be great. We would all like to draw our pension from the age of 70 to the age of 90. However, many in my constituency and elsewhere could be retiring at 60 and living fewer than 10 years and drawing a pension at that time. We need to work together as a society. We cannot rely entirely on an individual saving for themselves. Therefore, there are more questions than answers at this stage. A piecemeal approach to pension provision, as is happening, does not seem to be working. Although we all understand that the pension age and retirement age are two separate things, they are very much linked. How do we get more individuality and encourage individual responsibility, yet protect the most vulnerable? The Pensions Commission report of 2005 stated:""Faced with the increasing proportion of the population aged over 65, society and individuals must choose between four options. Either pensioners will become poorer relative to the rest of society; or taxes/National Insurance contributions devoted to pensions must rise; or savings must rise; or average retirement ages must rise. But the first option (poorer pensioners) appears unattractive; and there are significant barriers to solving the problem through any one of the other three options alone. Some mix of higher taxes/National Insurance contributions, higher savings and later retirement ages is required."" That is a very good summary of the position. We need to consider the three options of increased taxes or national insurance, savings and average retirement ages increasing. None the less, the fear is that the first option, which means that pensioners will become poorer, might be where we are heading.