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Turner wants pension age raised to 70

FSA chairman Lord Turner says he wishes he’d been more radical in his Turner Report on pensions and said there were arguments for raising the state pension age to 70.

Speaking to the BBC, Turner said he believed the state pension age should be raised more quickly.

At present, it will rise to 66 in 2024, 67 in 2034 and 68 in 2044.

He also said that public sector workers should be moved out of final salary schemes and into more flexible pensions.

He told the BBC: “If I was redoing my report I would be more radical, arguing for an even faster increase in the state pension age.”

Pensions consultant Ros Altmann says: “At last, it seems, Lord Turner has recognised that the Pensions Commission report was not radical enough.

“It has been so frustrating these past few years, as I have consistently been calling for more radical change, to listen to the Government pretending that the post-Turner reforms were already radical – when they were not at all.

“Turner’s analysis was brilliant, but the recommendations were a half-way house compromise. It was such a wasted opportunity.

“The Pensions Commission report wrongly concluded that there was no pensions crisis. In reality, there has been a crisis in our pension system for many years and it has worsened enormously since the Pensions Commission report.

“We urgently need to radically rethink both pensions and retirement but politicians have not risen to this challenge.”


Ripple effect

Last week’s publication of the retail distribution review was not directly relevant to mortgages. However, there will likely be some sort of read across to the sector in due course. Implementation of the RDR is not scheduled until 2012 and it has been years in the making. It is therefore highly improbable that any similar changes to mortgage regulation will take place for at least three years, especially seeing as the implications of the forthcoming European Commission mortgage directive will need to be considered.

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