State pension under threat

Turner commission proposals opposed to government absorbing risk of people living longer

The Government would no longer guarantee a definite level of state pension at an agreed retirement age under proposals being considered by Adair Turner's Pension Commission. Turner has been investigating methods of protecting the state from the risk of uncertain life expectancies. He believes the Government should either vary the retirement age in line with changing calculations of longevity or adopt the Swedish model, where the state gives an assured investment return on contributions but actual income depends on prevailing annuity rates. Turner believes the state has a role in protecti...