AGE CONCERN’S RESPONSE TO THE GOVERNMENT’S WHITE PAPER ON PENSIONS, PUBLISHED TODAY

25 May, 2006

Gordon Lishman, Age Concern’s Director-General, said:
 
“The Government has hit the target but missed the bullseye. This White Paper has delivered a win for future pensioners but is off the mark for today’s.

“Women and carers are the clear winners today. For too long, women have been penalised by an outdated pensions system, designed for the world of the 1940s not the 21st century. We are absolutely delighted that the Government has finally listened to our calls for a fair deal for women by proposing a more flexible carer’s credit and a reduction in the number of years needed for a full state pension. These changes should also be introduced retrospectively to those already retired with incomplete records.

“We also welcome the commitment to set up a new national pensions saving scheme, which is essential in making saving pay for people on low and modest incomes.

"If State Pension Age is going to rise in order to fund a better state pension, we need to see a transformation in the workplace to enable older workers to continue to work if they want to, as well as targeted programmes to support those who cannot work. The Government must ensure that inequalities between rich and poor are not exacerbated by this reform.

“But this has to be a settlement for all generations. Unless the Government intervenes quickly, the real value of the basic state pension will fall to a dismal £72 by 2012.* Today’s pensioners will have to wait a long time to see any gains from this new settlement. At the very least, the Government should make the link between Pension Credit and earnings statutory so that current pensioners don’t get poorer the longer they live.
 
“We now need an ongoing Pensions Commission which can advise government on the success of the new measures and any new steps which will be needed to ensure we can all look forward to a retirement free of poverty.”