Business leaders have said that raising the retirement age to 70 should form part of a package of measures to avert the pensions crisis. In a report to the Turner Commission, the Institute of Directors have called for a progressive reduction in stamp duty on equity transition for pension funds and the closure of public sector defined benefit schemes to new entrants.
They have also called for an end to means testing of the state pension, with a flat level set at £110 per week, and an annual publication of total future liabilities of public sector schemes.
The Institute of Directors would also like to see a gradual increase of retirement age to 70, with added incentives introduced for those taking later retirement, in the shape of larger tax-free lump-sums.
Our view
As ever, education, we believe is key in addition to applying two "sticks":
1) Forced, compulsory pension payments
2) Forced later retirement.