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Welfare Reform on the Web (November 2009): Pensions - UK

Economists call for pensions at 70

N. Cohen

Financial Times, Oct. 21st 2009, p. 2

The National Institute for Economic and Social Research (NIESR) has said the state pension age must increase to 70 by 2015, and income support for over-60s be phased out, otherwise tax increases of up to 7p on the basic rate of income tax, or massive cuts to government spending and public sector jobs, will be needed.

Finding certainty in uncertainty

T. Kochen

Life & Pensions, Oct. 2009, p. 32-35

Theo Kochen, chief executive of Cardano, looks at two theories by Keynes and Pascal which can be used to help pension funds operate more efficiently during times of uncertainty.

IoD backs retirement at 70

N. Timmins

Financial Times, Oct. 20th 2009, p. 4

A report by the Institute of Directors calls for the state pension age to be increased to 70 'as soon as reasonably practical' to reflect increasing life expectancy.

Life expectancy rises for over-65s

N. Cohen

Financial Times, Oct. 22nd 2009, p. 2

Figures from the Office for National Statistics show the average life expectancy of 65-year old men has increased from 15.99 years in 2000-2 to 17.53 years in 2006-8. Women's life expectancy has also risen, but not as much, to 20.17 years in 2006-8, up from 19.08 years in 2000-2. These increases will put growing pressure on UK pensions.

Older workers hit by recession and forced retirement

A. Arkin

Labour Research, Oct. 2009, p. 18-21

Older workers made redundant in the 2009 recession are unlikely to find a job again. They have also seen the value of their savings and pension pots plummet. Moreover, under current law employers can force people to retire at 65 regardless of whether they need to continue to work. However, this law will be reviewed in 2010 and the idea of a national default retirement age may be abandoned.

Third of workers have no pension

M. Butterworth

Daily Telegraph, Oct. 1st 2009, p. 2

A study by Baring Asset Management has shown that as many as 40% of women and a third of men, have no private or occupational pension in place and will rely on the state during their retirement. Numbers with no private or occupational scheme are increasing, up 2% every year over the past three years.

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