The Institute of Public Policy Research has today called for the restoration of the state pension link with average earnings, saying that this should be partly funded by a rise in the retirement age to 67.

The IPPR's report - "A New Contract for Retirement" - also argues that the government should abandon its stakeholder second state pension and the Treasury's proposals for pension credits.

Forum Response: Help the Aged

A spokesman for Help the Aged told ePolitix.com: "The government deserves plaudits for recognising pensioner poverty as a serious issue, and responding with new resources to address the problem.

"But it is wrong to dismiss the IPPR analysis as unworkable and unaffordable, since these have been key considerations in the eighteen months of wide-ranging enquiry conducted by the Institute.

"Both the government and the IPPR have started with the same objectives, and if each has reached different conclusions there should be a reasoned debate and not an arrogant brush off.

"Help the Aged happens to agree with the IPPR. Indeed there are aspects of the government's chosen policies - such as the Pension Credit - which we would regard as unworkable.

"There is room to question whether the various strands of pension building are actually delivering the answers we all want, and there is a clarity and sense of fairness about the IPPR position which is appealing, practicable and workable."

Forum Response: Counsel and Care

Martin Green, chief executive of Counsel and Care, told ePolitix.com: "What we want to see is a greater flexibility in retirement and appropriate resources to enable people to have a good quality life."

Forum Response: Unison

A spokesperson for Unison told ePolitix.com: "Unison has long been campaigning for an increase in the basic state pensions with a restoration of the link to earnings and that personal care for the elderly should be free. So we welcome those conclusions in the IPPR report.

"But we have severe reservations about funding this by raising the retirement age to 67. People should be able to retire at 60, if they want, with enough money to live on comfortably to enjoy their retirement."