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Page last updated at 08:46 GMT, Thursday, 10 March 2011

Lord Hutton: 'We will have to work longer'

An independent review of public sector pensions has called for a rise in retirement age and for final salary pensions to be ended.

Report author, and former Labour minister, Lord Hutton, said that with increasing life expectancy and an aging workforce, the pensions were "headed for the rocks" unless action was taken.

He will recommend that retirement age should track the state pension, gradually rising to 68 over the course of the next 30 years.

"Because we are living longer we should work for longer," he told John Humphrys, saying both new public employees and those already working in the public sector "should all be part of dealing with this problem".

But Dave Prentis, general secretary of the public sector union Unison, said that the coalition government had already "pre-empted" Hutton's report, by changing the rules for pension contribution.

Lord Hutton will be "used" by the government, he said, as the coalition "is coming for public sector pensions".

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