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Economics, government & businessLatest NewsDepartment for Work and Pensions

People don’t trust the government on pensions

by Michael Millar 25 Jul 2005
by Michael Millar 25 Jul 2005

Raising the state pension age is vital, but people do not believe that they are likely to live longer than their parents or accept that they may need to work longer before collecting their state pensions, according to the Institute for Public Policy Research (IPPR).

Its research into attitudes towards retirement and pensions shows people do not accept the fact that life expectancy is increasing, and mistrusts government, the financial services industry and employers on the subject of pensions.

However in a report published today, IPPR argues that the state pension age should rise to 67 between 2020 and 2030 if the UK pensions system is to be sustainable and to reflect increased life expectancy.

Peter Robinson, IPPR senior economist and report author, said people are not convinced and distrust the evidence from employers, the financial services industry and government, basing their expectations on the experiences of friends and family.

“This distrust means it is vital that the government achieve its objective of a popular consensus for pension reform,” he said.

“Raising the state pension age is vital if the UK pensions system is to remain sustainable and cope with the pressure of an ageing population.”

The TUC said that “work ‘til you drop” retirement policies were not needed and decent pensions from 65 could be afforded if the government meets its target of getting 80% of people of working age into work.

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