There is no UK pensions crisis yet, a new report suggests.
Independent thinktank Tomorrow's Company believes that even though birth rates are declining and life expectancy is on the increase, it is too early to predict a major UK pensions shortfall.
Higher productivity by British workers is expected to outweigh the negative influence on living standards from an ageing population, believes the report authors.
"There is no ageing crisis. As a society we can afford to grow old," says one of the writers, Philip Sadler.
The thinktank disagrees with the government's 'old age support ratio', because it fails to take into account factors like a rising number of workers.
It predicts that for the next three-and-a-half decades, the relation between workers and dependents will remain stable.
In 2041, the "total economic support ratio" would probably be is likely to be imilar to the 1961 ratio, says the thinktank in its report.
These findings contradict warnings by work and pensions secretary who has been calling for action in the face of what is believed to be a looming UK pensions crisis.
The government's pension commission is expected to publish possible pensions solutions later this month.
The chancellor, Gordon Brown, has also called for a "national debate" to address the predicted pension deficit.
No UK pensions crisis, says thinktank
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No UK pensions crisis, says thinktank
Tue, 01 Nov 2005
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