Will the Turner report mean more money in your pocket? Only if you spend your life supported by state benefits your entire life. For everyone else, it is likely that you will be expected to pay more tax for longer to fund current pensioners whilst saving more to fund your own retirement.
Why is this sensible when savings are taxed, state pensions are means tested, residential care in England is paid for by the individual and the Chancellor takes 40% of your estate following your death?
For the majority of people, it is far more sensible to be a burden on the state in old age!
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What we are currently seeing is the effects of varying birth rates and increasing longevity set against a fixed retirement age and ‘a pay as you go’ benefits system. With the two post-War baby boom cohorts throwing a spanner in the works the unsustainable nature of our current system is becoming apparent.
What is not being discussed is just as important: the rising costs of social care and health care. Means testing can address the problem for the less well off but runs the risk of destroying savings as the rational approach will be to not save, it will also lead to dissatisfaction from the electorate that does save and possibly undermine the whole benefits system.
As a 1960s baby boomer myself, I am saving hard and trying to shelter what I can from the tax man so that I can have a decent retirement free of State benefits, however I expect I'll be taxed heavily on whatever income I receive in my retirement to pay for the ba#*%$ds that didn't try to help themselves.
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