[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Monday, 31 October 2005, 03:28 GMT
'No crisis over pensions' claim
A pensioner at a post office
The think tank says rising productivity means there is no crisis
Despite all the warnings there is no pensions crisis, a new report claims.

Think tank Tomorrow's Company says rises in productivity will enable the ageing population to sustain itself.

As each worker generates more wealth, they will be able to save more in pensions and pay more taxes to support the state pension, the report adds.

It also claims that saving more will not automatically be the best solution for any lack of pension because less spending would damage the economy.

As a society we can afford to grow old
Tomorrow's Company

The state pension would still need to be reformed by abandoning means testing and day-to-day lifestyles would not benefit as much from the rising productivity, the report says.

It also points out that the economy could be hurt if everyone started saving more instead of spending.

That would mean that extra savings would not grow by as much as people hoped, BBC correspondent Richard Scott said.

One of the report's authors Philip Sadler said there was no "ageing crisis".

"As a society we can afford to grow old," he said.

"Rising productivity will outweigh any negative influence on living standards from an ageing population."

Chancellor Gordon Brown has called for a "national debate" on the widely anticipated shortfall in pensions.

The government's Pension Commission issues a report in November designed to tackle the deficit.


pensions turner

LATEST NEWS

PENSIONS WHITE PAPER
BBC News examines how the UK pensions system fell into disrepair Q&A: You and your pension
How the new pension plans will affect your retirement

Pension reactions

DOCUMENTS IN FULL

TURNER REPORT

BACKGROUND
Pensions in figures

VIDEO

ASK THE EXPERT: PENSIONS
 
INTERNET TOOLS
 
The BBC is not responsible for the content of external web sites


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific