14-10-04

Government must act on pensions crisis – Barrett

John Barrett, Liberal Democrat MP for Edinburgh West, has challenged the Government to act now to deal with the pensions crisis outlined in this week’s Turner Report on UK Pensions.
 
The report found that more than 12 million working people are not saving enough for their retirement.It concluded that if taxes, savings or retirement ages were not increased, pensioners would suffer a 30% decline in relative incomes.
 
Speaking in the House of Commons during a debate on the issue, John Barrett said:
 
“Every week, I meet constituents who have worked all their lives who do not know what will happen to them when they retire.The more elderly of them have fought for their country, while others have watched children and grandchildren grow up. All the time they have thought that their pension would look after them in their later years. Now they hear about the pensions crisis. As a result, many realise that they have been living in a fool's paradise—that they have not paid enough, worked long enough or saved enough.
 
“The Government’s means-testing of pensioners produces many problems. Many pensioners do not apply for means-tested benefits. That exposes as a lie the contention that the poorest pensioners are helped by targeting them in that way. At present, 125,000 Scots do not claim their benefits. There is also an unknown number who know they are entitled to means-tested benefits but have decided, for whatever reason, not to apply for them. That could be because they have never claimed benefits and do not want to start now.
 
“It is vital the published report engages the public in the debate. They will hear different views from different parties, but what they want to hear is a degree of honesty. The debate must start now. Pensions are a long-term problem and we have to deal with it for the sake of this generation and of generations to come.
 
ENDS