‘Pension reform required’ to prevent future debt worries

The state pension needs to undergo significant reform if future retirees are to avoid debt concerns.

This is the view of economy expert Dr Ros Altman, who stated Britain is currently in the grips of a pensions crisis and advised that action needs to be taken to prevent a pensioners’ crisis in years to come.

Dr Altman, an investment banker who trained as an economist, warned that unless matters are addressed immediately, the problem “will damage our long-term growth potential and leave millions at risk of penury as they get older”.

She explained that the demographics demand substantial pension reform or there will be “more and more people living on less and less money”.

The working population would therefore need to be taxed harder to provide for them, she added.

According to the new coalition government manifesto, certain benefits for older people will be protected, such as the winter fuel allowance, free TV licences and free bus travel.

By Joe Shervin