Turner Commission - 2004
In October 2004, a Pension Commission, chaired by Adair Turner, reported that:
- By 2050 the average 65-year-old male will live another 27.7 years
- Currently, only 53% of women are employed at age 59
- At present, 11.3 million people in work are not making contributions to any private pension scheme
- Only 29% of employees of small and medium sized firms are in an employer-sponsored scheme
- Membership of final salary schemes has halved since 2000
- The UK's state pension system was one of the least generous in the developed world
The Commission concluded that society and individuals must choose between:
- Pensioners becoming poorer relative to the rest of society
- Raising tax to fund for more and longer-living pensioners
- Individual’s own pension provision rising
- Raising the state retirement age
Mr Turner concluded that:
'A major shift of risk is occurring - from the state, employers and the financial services industry, to individuals who are often ill equipped to deal with it.'
He felt that people could not rely on the value of their home to support them in their old age. 'Housing does not provide a sufficient solution, because those who lack pensions do not have the bigger housing assets, and there are significant risks in relying on housing.'
