Although the
commission will also examine ways of reviving the rapidly
closing "defined benefit" company schemes, which guarantee a
fixed future pension, today's interim report will not set out
specific policy recommendations, arguably relieving ministers of
the need to advance unpalatable proposals ahead of the general
election.
In a speech on his third term agenda, the prime minister
yesterday claimed that he was looking for an all-party consensus
on pensions, adding the challenge was to provide a system which
combined decent provision for those without savings with
incentives for all in work to "provide for themselves".
The opposition parties will claim the savings gap detailed by
the Turner commission has not just been caused by demographics,
or the decline in the stock market, but by steps taken by
government that have discouraged savings.
The Tory pensions spokesman, David Willetts, said Mr Blair
had to decide whether to increase the basic state pension or
have "large numbers of pensioners dependent on income-related
benefits".
Mr Willetts also criticised ministers for failing to compile
accurate figures, claimed that an elementary statistical howler
was committed when the Office of National Statistics claimed
wrongly that contributions to non-state pensions grew from ?50bn
in 1997 to ?86bn in 2001.
"One of the reasons why the government has failed to
recognise the scale of the crisis, and why the policy response
has been so inadequate is because they have been navigating with
false data," he said.
The work and pensions secretary, Alan Johnson, in the Commons
yesterday defended the principle of means-testing, at least in
the immediate future. "It is supposed to be deeply sinful but
pensioner poverty is what's deeply sinful. Means-testing is a
crucial part of our policy," Mr Johnson said. He added that if
the government had put the money it has invested in the
means-tested pension credit into the basic state pension
instead, every pensioner would have got ?11 a week more but the
poorest would be ?30 a week worse off.

In response to todays Pension Commission's report, Tony Watts
Editor of the Mature Times newspaper writes:
"Nothing in today's report surprises me. At
Mature Times we've been banging on about the growing crisis in
pensions for years now - well before the Commission started work
- and it's as plain as the nose on Mr Brown's face that
something serious has to be done to avert a crisis for millions
of people and for the country at large.
For a start, the country has to find ways of helping the 2.6
million plus people aged between 50 and 65 deemed to be
'economically inactive' back into earning money rather than
living on disability or using up their savings.
Most of these people could go back to work - except
institutional ageism has made them feel they are on the
scrapheap.
Secondly, the nonsense of ?5 billion a year being stripped out
of pensions funds has to stop. Who is going to invest in a
private pension when it not only performs poorly but when the
'piggy bank' is regularly raided by the Chancellor?
Thirdly, we have to recognise that a decent
State pension is the only answer for millions of people, and
that this has to be set at a level well above the poverty line,
and it has to be properly funded and linked to earnings, not the
RPI which simply does not reflect what older people spend their
money on.
All this calls for joined up thinking - no one of these
solutions will work on its own: help people back to work,
restore faith in private pensions and re-establish the role of
the State pension. We need action now - not in two years time.
And whatever party can put together a workable solution will be
in pole position to win the votes of Britain's 11 million
pensioners at the next election - and probably the votes of the
7 million people heading towards retirement in the next 15
years.
Grey power will win the next election - and it would be a
foolish party leader who takes the votes of older people for
granted.

Read the
articles on various newspapers:
Read the article on the Independent web site
The Sun - page 2
Mirror - page 10
Express - page 8, 9
