Sadly when pensions hit the news it's almost always a "bad thing". I am currently working through with my select committee what went wrong at BHS. After last week's announcement on Tata Steel (the Pension Fund wants to make smaller increases in the pension) pensions will remain a focus.
Since our state pensions were introduced in their current form 70 years ago there has been a social revolution. Most importantly on average we live much longer. Many who took "early retirement" in the last twenty years will be retired longer than they worked. This has meant that the amount employees have saved in work has not kept pace with the amount needed to be drawn out in retirement.
For the state scheme pensioners have always been dependent on those in work to fund their pensions through tax. This is perfectly fair - the same system has operated for decades - but in reality we are increasingly close to having more pensioners than people in employment paying in. For those in "private schemes" the current very low interest rates make it far harder to invest money. As a result some schemes cannot pay out on their promises and may have to be rescued where this can be afforded by their sponsoring employer and if not by other pension schemes.
To help this and earlier Governments have introduced a series of measures. The state pension will continue to grow above inflation, supporting those in retirement. However the state pension and what it provides is becoming simpler to understand. To top up the "basic state pension" we have introduced automatic enrolment into a private pension for all employees. 6 million are in a scheme already and this is growing fast. The employee, employer and Government all put in money that will provide an extra income in retirement.
The age at which we become eligible for the state pension is increasing to reflect the fact that we are living longer. We will still be retired for much longer than in the past - generally for every two years increase in life expectancy we will work for one more year - but the age at which we can expect to get the state pension if we are currently below 50 will gradually rise.
It is incredibly important that everyone is aware of these changes which are designed to ensure we continue to fund decent retirements for all without placing an impossible burden on those in work. There are many long past traditional retirement age who thoroughly enjoy and wish to continue working. (The biggest usage of the "senior citizens bus card" is pensioners using it in London to commute to work!). It is hugely important though that we as a society continue to be in a position to fund and support those who have worked all their lives and need our support in retirement.