Friday, May 26, 2006

Pension age to rise

25/5/2006 3:51:09 PM

By Adrian Croft and Tom Burroughes

LONDON (Reuters) - The government unveiled ambitious plans on Thursday to make people work until they are 68 and encourage them to save in an effort to defuse a pensions time bomb.

In the biggest shakeup of the pensions system in 60 years, the government endorsed an experts' plan to automatically enrol workers into a national pension savings scheme to help close an estimated 57 billion pound ($107 billion) savings gap.

Prime Minister Tony Blair said the plan "gives us a chance of having a really strong, sustainable, workable, affordable way of people saving for their retirement.

Like many other European countries, Britain faces a huge pensions challenge with an estimated 7 million people not saving enough for their old age. Rising lifespans and low birthrates have worsened the problem.

Opposition parties broadly supported the Labour government's plans, which are based on the recommendations of a pensions commission chaired by Adair Turner, who has combined careers in business, public policy and academia.

Excuse me but...........successive governments have totally mis-managed this country's pension system. Those people who have been paying for their pension through the government system, are now being asked to fix the problem by paying more and working longer to get a better pension with little if any real cost to the government.

The 'new plan' to automatically enroll workers in a pension saving scheme is not new at all. It was first designed in post war Britian. It was called the Social Welfare System. All Tony the Fuqwit is doing is re-selling the package we already have at a greater cost.

How about the new scheme is introduced with the government giving back all we have paid in and start afresh.

In reality Tony doesn't give a rats arse because his pension, and the pensions of his brothers in office, is index linked through a system that the rest of us are told is no longer sustainable. Way to go Fuqwit!

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