Pensions expert Lord Turner questions policy

Feb 8 2010 by Adrian Pearson, The Journal

THE Government has been told that research from the North East proving people can work productively when they pass 65 should be used to block any increase in immigration to the United Kingdom.

Lord Turner, chairman of the FSA and former head of the pension commission, told a Tyneside audience that the over-65s should work longer because the majority can expect to enjoy decades of good health.

He cited research by Newcastle’s world renowned Institute for Ageing and Health which, he claimed, proved there was no pensions crisis waiting to hit the UK.

Ministers have previously said immigration will have to go up to ensure the economy is growing enough to pay increasing state pensions claims. But Lord Turner said working past 65 would reduce the strain on pensions and he also dismissed worries that the elderly needed greater health care.

However, alongside this came a warning from the institute that thousands of people living in poverty across the North East will miss out on the benefits of increasing life expectancy.

At a seminar on ageing in Newcastle, Lord Turner said research has already shown that a man retiring aged 65 this year could expect to live on average another 22 years – women can expect an average of 24 years more – with most of those people enjoying relatively good health.

He was joined by Newcastle University’s Professor Tom Kirkwood, director of the Institute for Ageing and Health, who warned that those living in poverty in the North East and elsewhere were the least likely to see the benefits of the healthy retirement most could expect.

Prof Kirkwood said: “We are living longer, life expectancy for everyone is increasing by five hours each day, and it is true that 70 is the new 50.

He added: “I think it is a really, really urgent challenge to recognise that there are many people here who, for one reason or another, are disadvantaged, who suffer worse health through life, who have missed out on the opportunities to gain the chances to have an old age of quality.”