Tuesday 14th March 2006
Lord Turners Pension Commission has been attacked for not encouraging pensioners to have more "fun".
Michael Pomery, president of the Institute of Actuaries, spoke out against the emphasis the Pension Commission placed on saving as a duty, instead arguing that spending in old age could be seen as the time when people could "enjoy" their well earned savings.
He also said that increased spending by pensioners would help relieve the present pensions crisis, but this would only be made possible by what he called "two essential preconditions".
"The first is that people of all ages become better educated about financial matters, so that they have the confidence to take control of their destinies," Mr Pommery said.
"Secondly, providers need to engineer better, more flexible retirement products that will cater more effectively for longer retirements, and changing needs, especially in the early stages of retirement."
Restricted spending by pensioners is reflected in rising levels of inheritance tax, which has soared from £1 billion in 1988 to an expected £3 billion by the end of this year.
The government is seeking a centralised answer to the problem, with its latest National Pension Savings Scheme proposals set to use taxation to divert pension contributions into fewer, larger pension funds. 
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