Pensioner benefits will cost £12bn more in 2019 than they did ten years previous, the director of the Institute for Fiscal Studies claims.
Writing in The Times today, IFS director Paul Johnson says funding defined benefit public sector pensions and the slow rise of the state pension age will cause bills to soar.
He says: “Recent work by my colleagues at the IFS suggests that most people retiring now will be better off in retirement than they were on average over their working lives.
“This is probably the greatest triumph of social policy during my lifetime. But understanding and policy decisions often lag behind facts such as these.
“The continuing “triple lock” on state pensions, so that they rise by whichever is the fastest of prices, earnings or 2.5 per cent, and the continued protection of benefits such as the winter fuel allowance, must be seen in this context.”
Johnson says costs could only be brought under control by cutting benefits and services for older people, increasing taxes, or making cuts to other areas of Government spending.
He adds that middle-aged and retired people have “been spared most of the effects of austerity” following the financial crisis.