Pensioner debt problems 'need to be addressed'
Pensioner debt problems 'need to be addressed'
- Thursday, 13 May 2010The government needs to address the pensions crisis and encourage saving rather than borrowing that could lead to
debt problems, an independent policy advisor to the pensions industry has urged.
Dr Ros Altmann states that a pensions crisis is becoming apparent as over two million pensioners are in poverty. She added that for the past 13 years the savings culture once prevalent in Britain has fallen apart.
Companies struggle with huge pension deficits and young people are encouraged to borrow, possibly leading to
debt problems, instead of saving which makes private pensions low. Many people face financial difficulty when they retire.
However, Iain Duncan Smith has been appointed as secretary of state for work and pensions and recent announcements about changes to policy surrounding pensions seems like good news to Dr Altmann.
She said: "There is so much to be done, after years of neglectful damage. The opportunity for radical and successful reform is there - I do hope the policymakers will take it."
Changes to pensions policy include phasing out the default retirement age, reviewing the state pension age, increasing state pension by at least 2.5 per cent and abolishing the requirements to buy annuity by 75.
An annuity is an income for life provided by an insurance company in exchange for a pension fund.

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